Southern Company (SO)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,976,000 | 3,535,000 | 2,408,000 | 3,134,000 | 4,739,000 |
| Revenue | US$ in thousands | 25,253,000 | 29,279,000 | 23,113,000 | 20,375,000 | 21,419,000 |
| Net profit margin | 15.74% | 12.07% | 10.42% | 15.38% | 22.13% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $3,976,000K ÷ $25,253,000K
= 15.74%
The net profit margin of Southern Company has shown some fluctuations over the past five years. In 2019, the company had a relatively high net profit margin of 22.13%, indicating that for every dollar of revenue generated, the company retained $0.22 as profit. Subsequently, there was a decline in the net profit margin in 2020 to 15.31%, followed by a further decrease in 2021 to 10.35%.
However, there was a significant improvement in 2022, with the net profit margin increasing to 12.04%. This improvement continued in 2023, with the net profit margin reaching 15.74%, which is the highest among the years analyzed.
Overall, the recent increase in the net profit margin suggests an improvement in the company's profitability, with a higher proportion of revenue being retained as profit. This trend indicates potentially effective cost management or revenue growth strategies implemented by Southern Company in recent years.
Peer comparison
Dec 31, 2023