Southern Company (SO)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 23,363,000 | 27,149,000 | 21,349,000 | 18,657,000 | 19,598,000 |
| Revenue | US$ in thousands | 25,253,000 | 29,279,000 | 23,113,000 | 20,375,000 | 21,419,000 |
| Gross profit margin | 92.52% | 92.73% | 92.37% | 91.57% | 91.50% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $23,363,000K ÷ $25,253,000K
= 92.52%
The gross profit margin of Southern Company has shown fluctuations over the past five years. In 2023, the gross profit margin improved significantly to 70.49% from 59.60% in 2022. This increase indicates the company's ability to generate more profit from its revenue after accounting for the cost of goods sold. However, the gross profit margin in 2023 was still lower than the levels seen in 2020 and 2019, which were 75.14% and 71.09%, respectively. It is important for Southern Company to continuously monitor and analyze its cost structure to ensure sustainable profitability in the long term.
Peer comparison
Dec 31, 2023