Southern Company (SO)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	23,362,000	17,985,000	19,371,000	20,820,000	21,010,000	26,438,000	24,338,000	22,134,000	20,839,000	20,860,000	20,178,000	19,699,000	18,965,000	18,549,000	18,877,000	19,464,000	20,293,000	20,716,000	20,938,000	21,238,000
Revenue (ttm)	US$ in thousands	25,253,000	26,255,000	27,653,000	29,111,000	29,279,000	27,999,000	25,859,000	23,851,000	23,113,000	22,463,000	21,845,000	21,267,000	20,375,000	20,172,000	20,547,000	21,025,000	21,419,000	21,842,000	22,006,000	22,535,000
Gross profit margin		92.51%	68.50%	70.05%	71.52%	71.76%	94.42%	94.12%	92.80%	90.16%	92.86%	92.37%	92.63%	93.08%	91.95%	91.87%	92.58%	94.74%	94.84%	95.15%	94.24%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $23,362,000K ÷ $25,253,000K
= 92.51%

The gross profit margin of Southern Company has shown fluctuations over the past eight quarters. Starting from Q1 2022 at 67.50%, it peaked at 70.49% in Q4 2023, showing an overall positive trend during this period. However, there were some fluctuations in between, with the lowest point at 59.60% in Q4 2022.

The increasing trend in the gross profit margin indicates that Southern Company has been able to effectively control its production and operating costs relative to its revenue. This is a positive sign for the company's operational efficiency and profitability.

Overall, the improving gross profit margin suggests that Southern Company has been successful in managing its direct costs of goods sold, which is essential for generating profits and sustaining its business operations. Monitoring this trend over time can provide valuable insights into the company's financial performance and operational effectiveness.