Southern Company (SO)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 10,694,000 | 10,432,000 | 10,416,000 | 8,965,000 | 8,617,000 |
| Total current liabilities | US$ in thousands | 15,993,000 | 13,467,000 | 15,724,000 | 10,921,000 | 12,079,000 |
| Current ratio | 0.67 | 0.77 | 0.66 | 0.82 | 0.71 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $10,694,000K ÷ $15,993,000K
= 0.67
The current ratio of Southern Company has shown some fluctuations over the past five years. As of December 31, 2020, the current ratio was 0.71, indicating that the company's current assets were 71% of its current liabilities. By December 31, 2021, the current ratio improved to 0.82, suggesting a better short-term liquidity position. However, in the following year, the ratio slightly decreased to 0.66, raising concerns about the company's ability to meet its short-term obligations.
On December 31, 2023, the current ratio increased to 0.77, showing a slight improvement in liquidity. Finally, by the end of 2024, the current ratio dropped again to 0.67, signaling a potential strain on the company's ability to cover its current liabilities with current assets.
Overall, the trend in Southern Company's current ratio indicates some variability in its short-term liquidity position over the years, with the company experiencing both improvements and declines. It is important for stakeholders to closely monitor these fluctuations to assess the company's ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2024