Southern Company (SO)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 4,401,000 | 3,976,000 | 3,535,000 | 2,408,000 | 3,134,000 |
| Revenue | US$ in thousands | 26,724,000 | 25,253,000 | 29,279,000 | 23,113,000 | 20,375,000 |
| Net profit margin | 16.47% | 15.74% | 12.07% | 10.42% | 15.38% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $4,401,000K ÷ $26,724,000K
= 16.47%
The net profit margin of Southern Company has shown variability over the five-year period from December 31, 2020, to December 31, 2024. The net profit margin was 15.38% in 2020, indicating that the company retained $0.1538 of each dollar of revenue as profit. The margin declined to 10.42% in 2021, reflecting a decrease in the portion of revenue converted into profit.
In 2022, the net profit margin improved to 12.07%, suggesting a more efficient management of costs and expenses to generate profits. Subsequently, in 2023, the net profit margin further increased to 15.74%, indicating enhanced profitability and possibly effective revenue management strategies.
The most recent data for 2024 shows a net profit margin of 16.47%, which represents the highest level of profitability in the five-year period. This indicates that Southern Company has been successful in generating higher profit relative to its revenue, signaling positive financial performance in the most recent year.
Overall, despite fluctuations, the trend in net profit margin suggests that Southern Company has made efforts to improve its profitability over the analyzed period.
Peer comparison
Dec 31, 2024