Southern Company (SO)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 7,068,000 | 5,826,000 | 5,370,000 | 3,698,000 | 4,885,000 |
| Total assets | US$ in thousands | 145,180,000 | 139,331,000 | 134,891,000 | 127,534,000 | 122,935,000 |
| Operating ROA | 4.87% | 4.18% | 3.98% | 2.90% | 3.97% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $7,068,000K ÷ $145,180,000K
= 4.87%
The operating return on assets (ROA) for Southern Company has fluctuated over the past five years. Starting at 3.97% on December 31, 2020, it decreased to 2.90% by the end of 2021. However, Southern Company managed to improve its operating ROA in the following years, reaching 3.98% by the end of 2022, 4.18% by the end of 2023, and further increasing to 4.87% by the end of 2024. This upward trend indicates that Southern Company's efficiency in generating operating income from its assets has been improving over the years, suggesting better utilization of its assets to generate profit. Overall, the increasing trend in the operating ROA reflects positively on Southern Company's operational performance and asset management effectiveness.
Peer comparison
Dec 31, 2024