Southern Company (SO)
Quick 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 | 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 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick 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
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,070,000K
+ $—K
+ $—K)
÷ $15,993,000K
= 0.07
The quick ratio of Southern Company, which measures its ability to meet its short-term obligations with its most liquid assets, has shown significant fluctuations over the specified time period from March 31, 2020, to December 31, 2024.
The quick ratio started at a relatively low level of 0.37 on March 31, 2020, indicating a potential liquidity challenge in meeting short-term obligations. The ratio then decreased further to 0.20 on June 30, 2020, signaling a worsening liquidity position.
Subsequently, there were fluctuations in the quick ratio, with some improvements seen in the later quarters of 2020 and early 2021. However, there were fluctuations in the quick ratio throughout 2021 and into 2022, with occasional improvements and declines.
Notably, there was a sharp increase in the quick ratio from March 31, 2022, where it significantly improved to 0.77, and it remained relatively high over the following quarters. This notable improvement suggests a strengthened ability to meet short-term obligations using highly liquid assets.
The quick ratio dropped to 0.06 by December 31, 2023, which indicates a significant decline in liquidity. The ratio remained relatively low in the subsequent quarters of 2024.
In conclusion, the quick ratio of Southern Company has shown fluctuations over the years, indicating changes in its liquidity position. The company experienced varying levels of liquidity challenges and improvements during the period, suggesting the need for careful monitoring of its short-term financial health.
Peer comparison
Dec 31, 2024