Southern Company (SO)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.67 | 4.61 | 4.72 | 4.39 | 4.04 | 4.82 | 5.72 | 6.62 | 6.90 | 6.43 | 6.75 | 6.65 | 5.54 | 5.37 | 5.45 | 4.99 | 4.21 | 4.29 | 4.55 | 5.10 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Southern Company's inventory turnover has generally shown an increasing trend over the past few years, indicating that the company is efficiently managing its inventory levels. The inventory turnover ratio has increased from 5.10 in March 2020 to 4.67 in December 2024.
On the other hand, the receivables turnover, payables turnover, and working capital turnover ratios are not provided in the data, suggesting that detailed analysis regarding the efficiency of the company's receivables, payables, and working capital management cannot be conducted based on the available information.
Overall, Southern Company's inventory turnover indicates that the company has been effectively managing its inventory levels to support its operations. To gain a comprehensive understanding of the company's overall efficiency in managing its working capital and cash conversion cycle, additional data on receivables, payables, and working capital turnover ratios would be required.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 78.14 | 79.13 | 77.31 | 83.08 | 90.32 | 75.71 | 63.80 | 55.17 | 52.93 | 56.80 | 54.08 | 54.89 | 65.85 | 67.92 | 67.01 | 73.08 | 86.67 | 85.16 | 80.24 | 71.58 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
To analyze the activity ratios for Southern Company based on the provided data, we will focus on the Days of Inventory on Hand (DOH) ratio.
The Days of Inventory on Hand ratio measures the number of days it takes a company to sell its average inventory balance. A lower DOH ratio is generally preferred as it indicates a faster turnover of inventory, which can free up working capital and reduce holding costs.
Looking at the data provided, we can see a fluctuating trend in Southern Company's DOH ratio over the reported periods. The ratio ranged from a high of 90.32 days in December 2023 to a low of 52.93 days in December 2022. Generally, a decreasing trend in the DOH ratio indicates an improvement in inventory management efficiency.
It is worth noting that Southern Company's DOH ratio decreased from 90.32 days in December 2023 to 78.14 days in December 2024. This indicates a potential improvement in inventory management efficiency for the company during this period.
Overall, a more detailed analysis is necessary to understand the factors driving these fluctuations in Southern Company's DOH ratio and to assess the effectiveness of the company's inventory management policies and procedures.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 2.64 | 0.29 | 0.30 | 0.31 | 0.30 | 0.27 | 0.26 | 0.25 | 0.24 | 0.24 | 0.24 | 0.23 | 0.23 | 0.24 | 0.25 |
| Total asset turnover | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.19 | 0.20 | 0.22 | 0.22 | 0.21 | 0.20 | 0.19 | 0.18 | 0.18 | 0.17 | 0.17 | 0.17 | 0.16 | 0.17 | 0.18 |
The Fixed Asset Turnover ratio for Southern Company has shown a fluctuating trend over the years, starting at 0.25 in March 2020, dropping to 0.23 by September 2020, then gradually increasing to 0.31 by December 2022. However, there was a sudden spike to 2.64 in September 2023 before the data for the subsequent periods became unavailable. This spike could indicate a significant change in the utilization of fixed assets during that quarter.
On the other hand, the Total Asset Turnover ratio has been relatively stable, varying between 0.16 and 0.22 from September 2020 to March 2023. This ratio measures the efficiency at which the company is using all its assets to generate revenue.
Overall, the Fixed Asset Turnover ratio provides insights into the efficiency of Southern Company in generating revenue from its fixed assets, while the Total Asset Turnover ratio gives a broader view of the company's overall efficiency in utilizing all assets for revenue generation. Further analysis would be needed to understand the reasons behind the significant fluctuations observed in the Fixed Asset Turnover ratio, particularly the sharp increase in September 2023.