Southern Company (SO)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 26,724,000 | 25,253,000 | 29,279,000 | 23,113,000 | 20,375,000 |
| Total assets | US$ in thousands | 145,180,000 | 139,331,000 | 134,891,000 | 127,534,000 | 122,935,000 |
| Total asset turnover | 0.18 | 0.18 | 0.22 | 0.18 | 0.17 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $26,724,000K ÷ $145,180,000K
= 0.18
The total asset turnover ratio for Southern Company has shown fluctuations over the past five years. In December 2020, the total asset turnover was 0.17, signifying that the company generated $0.17 in revenue for every dollar of assets. This ratio slightly increased to 0.18 by December 2021 before experiencing a more significant rise to 0.22 by December 2022, indicating improved efficiency in utilizing its assets to generate revenue.
However, there was a decline in the total asset turnover to 0.18 by December 2023 and remained the same at 0.18 by December 2024. These fluctuations suggest that Southern Company may have experienced some challenges in effectively utilizing its assets to generate revenue consistently.
Overall, the trend in total asset turnover indicates that Southern Company has made improvements in asset efficiency, particularly in 2022, but may need to focus on maintaining or further enhancing this efficiency in the upcoming years to ensure optimal utilization of its assets to generate revenue.
Peer comparison
Dec 31, 2024