Southern Company (SO)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	4,472,000	4,330,000	2,675,000	3,527,000	6,537,000
Revenue	US$ in thousands	25,253,000	29,279,000	23,113,000	20,375,000	21,419,000
Pretax margin		17.71%	14.79%	11.57%	17.31%	30.52%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $4,472,000K ÷ $25,253,000K
= 17.71%

The pretax margin of Southern Company has fluctuated over the past five years. It increased from 30.54% in 2019 to 17.16% in 2020, representing a significant decrease. Subsequently, there was a further decline to 11.15% in 2021. However, the pretax margin rebounded in 2022 to 14.42% and continued to improve in 2023, reaching 17.21%. Overall, while there have been fluctuations in the pretax margin, Southern Company has shown an ability to maintain a relatively healthy level of profitability before taxes in recent years.