Southern Company (SO)

Current 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
Total current assets	US$ in thousands	10,694,000	11,040,000	10,993,000	10,543,000	10,432,000	11,088,000	10,979,000	9,555,000	10,416,000	10,363,000	9,781,000	9,297,000	8,965,000	9,674,000	9,551,000	9,469,000	8,617,000	10,574,000	9,069,000	9,430,000
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
Current ratio		0.67	0.91	0.91	0.92	0.77	0.84	0.83	0.69	0.66	0.81	0.85	0.89	0.82	0.86	0.82	0.82	0.71	0.90	0.97	0.99

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 fluctuations over the past few years. It started at around 0.99 in March 2020 but gradually decreased to 0.71 by December 2020. The company's liquidity position improved slightly by March 2021 to 0.82 but remained relatively stable around this level until September 2021.

There was a slight uptick in the current ratio to 0.89 by March 2022, but it decreased to 0.81 by September 2022. The ratio increased to 0.92 by March 2024, indicating a temporary improvement in liquidity, but then declined to 0.67 by December 2024, reflecting potential challenges in meeting short-term obligations.

Overall, the current ratio of Southern Company has displayed variability, suggesting fluctuations in the company's ability to cover its short-term obligations with its current assets. Monitoring this ratio closely can provide insights into the company's liquidity position and financial health.