Southern Company (SO)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 25,253,000 | 29,279,000 | 23,113,000 | 20,375,000 | 21,419,000 |
| Total assets | US$ in thousands | 139,331,000 | 134,891,000 | 127,534,000 | 122,935,000 | 118,700,000 |
| Total asset turnover | 0.18 | 0.22 | 0.18 | 0.17 | 0.18 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $25,253,000K ÷ $139,331,000K
= 0.18
The total asset turnover ratio for Southern Company has fluctuated over the past five years, ranging from 0.17 to 0.22. In 2023, the ratio decreased to 0.18 from 0.22 in 2022. This indicates that for every dollar of total assets the company had in 2023, it generated $0.18 in revenue.
A total asset turnover ratio below 1 suggests that the company may not be efficiently utilizing its assets to generate sales. While the slight decrease in the ratio from 2022 to 2023 may raise concerns about the company's asset utilization efficiency, it is important to compare this ratio with industry benchmarks and historical trends to gain a better understanding of Southern Company's performance in this area. Further analysis of the company's operations and industry dynamics is recommended to assess the effectiveness of its asset management strategies.
Peer comparison
Dec 31, 2023