Southern Company (SO)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,070,000 | 1,018,000 | 1,198,000 | 812,000 | 748,000 | 1,676,000 | 2,123,000 | 1,053,000 | 1,917,000 | 2,009,000 | 1,724,000 | 1,662,000 | 1,798,000 | 2,078,000 | 1,582,000 | 1,770,000 | 1,065,000 | 3,379,000 | 1,879,000 | 2,164,000 |
| Short-term investments | US$ in thousands | — | 2,650,000 | — | — | — | — | — | — | 6,169,000 | 6,285,000 | 6,281,000 | 6,348,000 | — | 1,278,000 | 1,287,000 | 1,368,000 | 1,362,000 | — | — | 1,386,000 |
| Total current liabilities | US$ in thousands | 15,993,000 | 12,165,000 | 12,028,000 | 11,458,000 | 13,467,000 | 13,214,000 | 13,240,000 | 13,893,000 | 15,724,000 | 12,801,000 | 11,487,000 | 10,434,000 | 10,921,000 | 11,259,000 | 11,660,000 | 11,586,000 | 12,079,000 | 11,750,000 | 9,334,000 | 9,553,000 |
| Cash ratio | 0.07 | 0.30 | 0.10 | 0.07 | 0.06 | 0.13 | 0.16 | 0.08 | 0.51 | 0.65 | 0.70 | 0.77 | 0.16 | 0.30 | 0.25 | 0.27 | 0.20 | 0.29 | 0.20 | 0.37 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,070,000K
+ $—K)
÷ $15,993,000K
= 0.07
The cash ratio of Southern Company has shown fluctuations over the periods analyzed. The cash ratio is a liquidity ratio that measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. Higher cash ratios indicate a more liquid position.
Looking at the data provided, the cash ratio fluctuated between 0.06 and 0.77 during the period from March 31, 2020, to December 31, 2024. The ratio experienced significant variability, with some quarters showing relatively low cash ratios, while others demonstrated higher levels of liquidity.
In general, a cash ratio below 1 indicates that the company may not have enough cash on hand to cover its short-term liabilities. Southern Company's cash ratio stayed predominantly below 1 throughout the analyzed period.
It is important for investors and stakeholders to closely monitor the cash ratio of a company, as a low ratio could indicate potential liquidity issues, while a high ratio might suggest that the company is not effectively utilizing its cash reserves. Overall, analyzing the cash ratio alongside other financial metrics can provide a more comprehensive view of Southern Company's financial health and liquidity position.
Peer comparison
Dec 31, 2024