Southern Company (SO)
Quick 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 | 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 | — | — | — | — |
| Receivables | US$ in thousands | 2,481,000 | 2,705,000 | 1,768,000 | 1,810,000 | 2,067,000 | 2,143,000 | 2,183,000 | 1,917,000 | 1,728,000 | 1,759,000 | 1,595,000 | 1,592,000 | 1,635,000 | 1,679,000 | 1,524,000 | 1,550,000 | 1,565,000 | 1,765,000 | 1,604,000 | 1,669,000 |
| 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 |
| Quick ratio | 0.24 | 0.33 | 0.29 | 0.21 | 0.65 | 0.82 | 0.89 | 0.95 | 0.32 | 0.45 | 0.38 | 0.41 | 0.34 | 0.43 | 0.36 | 0.53 | 0.28 | 0.45 | 0.27 | 0.31 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($748,000K
+ $—K
+ $2,481,000K)
÷ $13,467,000K
= 0.24
The quick ratio of Southern Company has shown some fluctuations over the past eight quarters. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. In Q2 2022, Southern Company had the highest quick ratio of 0.69, indicating a strong ability to cover its current liabilities with its quick assets. However, there has been a downward trend since then, with the quick ratio dropping to 0.53 in Q4 2023.
The fluctuations in the quick ratio suggest that Southern Company may be facing challenges in maintaining sufficient liquid assets to cover its short-term obligations. A declining quick ratio could indicate potential liquidity issues or inefficiencies in managing working capital. It is important for Southern Company to closely monitor its quick ratio and take appropriate measures to improve liquidity if needed to ensure its financial health and ability to meet short-term obligations.
Peer comparison
Dec 31, 2023