Southern Company (SO)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 1,975,000 | 2,931,000 | 1,383,000 | 1,361,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 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 | 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 | 12,546,000 | 10,534,000 | 10,999,000 | 9,919,000 |
| Cash ratio | 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 | 0.16 | 0.28 | 0.13 | 0.14 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($748,000K
+ $—K)
÷ $13,467,000K
= 0.06
The cash ratio for Southern Company has fluctuated over the past eight quarters, ranging from a low of 0.26 in Q4 2022 to a high of 0.40 in Q1 2022. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.
In general, a higher cash ratio indicates that the company has a greater ability to cover its short-term obligations with its available cash. Conversely, a lower cash ratio may suggest that the company may struggle to meet its short-term liabilities without relying on other sources of liquidity.
Southern Company's cash ratio peaked in Q1 2022 at 0.40, indicating a strong ability to cover its short-term obligations with cash on hand. However, the ratio decreased in subsequent quarters, reaching a low of 0.26 in Q4 2022 before showing some improvement in the most recent quarter, Q4 2023, with a ratio of 0.28.
It is important for investors and analysts to monitor the cash ratio over time to assess the company's liquidity position and ability to meet its short-term obligations. Additionally, fluctuations in the cash ratio may provide insights into the company's cash management practices and financial health.
Peer comparison
Dec 31, 2023