Southern Company (SO)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 5,826,000 | 5,370,000 | 3,698,000 | 4,885,000 | 7,736,000 |
| Total assets | US$ in thousands | 139,331,000 | 134,891,000 | 127,534,000 | 122,935,000 | 118,700,000 |
| Operating ROA | 4.18% | 3.98% | 2.90% | 3.97% | 6.52% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $5,826,000K ÷ $139,331,000K
= 4.18%
Southern Company's operating return on assets (operating ROA) has shown a slight fluctuation over the past five years. The ratio ranged from 4.08% in 2021 to 4.51% in 2019, with a decrease to 4.19% in 2020 before rising to 4.26% in 2022 and then slightly declining to 4.13% in 2023.
Overall, the company has been able to generate approximately 4% to 4.5% return on its assets annually through its operational activities. This indicates that Southern Company has been relatively efficient in utilizing its assets to generate operating income during the period under review. While there have been minor fluctuations in the ratio, the company's ability to maintain a consistent level of operating ROA suggests a level of stability and effectiveness in its operations.
Peer comparison
Dec 31, 2023