Southern Company (SO)

Current 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
Total current assets	US$ in thousands	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	9,817,000	9,917,000	8,352,000	8,709,000
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
Current ratio		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	0.78	0.94	0.76	0.88

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $10,432,000K ÷ $13,467,000K
= 0.77

The current ratio of Southern Company has shown fluctuations over the past eight quarters. In Q4 2023, the current ratio was 0.77, indicating that the company may have had difficulty meeting its short-term obligations with its current assets. The ratio improved in Q3 2023 to 0.84 but decreased slightly in Q2 2023 to 0.83. However, in Q1 2023, the current ratio dropped to 0.69, suggesting potential liquidity challenges for the company during that period.

Comparing these values to the ratios from the previous year, there seems to be some variability in the company's ability to cover its short-term liabilities with its current assets. In Q4 2022, the current ratio was at 0.66, which was the lowest point in the given timeframe. The ratio improved in the following quarters of 2022, with Q3 and Q2 showing ratios of 0.81 and 0.85, respectively. The highest current ratio observed was in Q1 2022 at 0.89, indicating a stronger ability to meet short-term obligations with current assets.

Overall, the trend in the current ratio for Southern Company suggests some fluctuations in its short-term liquidity position over the past year. It would be important to further analyze the company's financial performance and management of current assets and liabilities to understand the underlying reasons for these fluctuations.