Southern Company (SO)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 7,019,000 | 7,168,000 | 6,910,000 | 6,288,000 | 5,825,000 | 5,131,000 | 5,214,000 | 5,579,000 | 5,745,000 | 4,901,000 | 4,431,000 | 3,484,000 | 3,698,000 | 4,758,000 | 4,870,000 | 5,220,000 | 4,885,000 | 4,846,000 | 5,024,000 | 5,308,000 |
| Total assets | US$ in thousands | 145,180,000 | 143,956,000 | 141,937,000 | 140,120,000 | 139,331,000 | 138,321,000 | 137,116,000 | 134,756,000 | 134,891,000 | 134,005,000 | 130,769,000 | 128,639,000 | 127,534,000 | 127,861,000 | 125,907,000 | 125,393,000 | 122,935,000 | 123,158,000 | 119,731,000 | 118,852,000 |
| Operating ROA | 4.83% | 4.98% | 4.87% | 4.49% | 4.18% | 3.71% | 3.80% | 4.14% | 4.26% | 3.66% | 3.39% | 2.71% | 2.90% | 3.72% | 3.87% | 4.16% | 3.97% | 3.93% | 4.20% | 4.47% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $7,019,000K ÷ $145,180,000K
= 4.83%
Operating return on assets (Operating ROA) is a key financial ratio that measures a company's profitability generated from its operations relative to its total assets. Looking at the data provided for Southern Company, we observe fluctuations in the operating ROA over the quarterly periods from March 31, 2020, to December 31, 2024.
The trend in Southern Company's operating ROA shows some variability, with the ratio ranging from lows of 2.71% (March 31, 2022) to highs of 4.98% (September 30, 2024). Notably, the operating ROA reached its peak during the third quarter of 2024 before slightly decreasing in the subsequent quarter.
The gradual increase from 2022 to 2024 suggests an improved efficiency in generating profits from the company's operations relative to its assets. This positive trend indicates that Southern Company is effectively utilizing its assets to generate operating income.
However, the slight decrease in the operating ROA in the last quarter of 2024 may warrant further investigation to understand the factors influencing this decline. It could be due to changes in operating expenses, asset efficiency, or other operational factors affecting profitability during that period.
Overall, analyzing Southern Company's operating ROA provides valuable insights into the company's operational efficiency and profitability performance over the quarters, reflecting changes in how effectively the company is using its assets to generate earnings from its core operations.
Peer comparison
Dec 31, 2024