Southern Company (SO)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 5,229,000 | 5,484,000 | 5,301,000 | 4,744,000 | 4,346,000 | 3,312,000 | 3,484,000 | 3,956,000 | 4,224,000 | 3,892,000 | 3,473,000 | 2,444,000 | 2,577,000 | 3,450,000 | 3,544,000 | 3,806,000 | 3,495,000 | 3,523,000 | 3,659,000 | 4,109,000 |
| Revenue (ttm) | US$ in thousands | 26,724,000 | 26,428,000 | 26,134,000 | 25,419,000 | 25,253,000 | 26,255,000 | 27,653,000 | 29,111,000 | 29,279,000 | 27,999,000 | 25,859,000 | 23,851,000 | 23,113,000 | 22,463,000 | 21,845,000 | 21,267,000 | 20,375,000 | 20,172,000 | 20,547,000 | 21,025,000 |
| Pretax margin | 19.57% | 20.75% | 20.28% | 18.66% | 17.21% | 12.61% | 12.60% | 13.59% | 14.43% | 13.90% | 13.43% | 10.25% | 11.15% | 15.36% | 16.22% | 17.90% | 17.15% | 17.46% | 17.81% | 19.54% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $5,229,000K ÷ $26,724,000K
= 19.57%
The pretax margin of Southern Company shows fluctuations over the period from March 31, 2020, to December 31, 2024. The pretax margin started at 19.54% in March 2020 but experienced a slight decline to 17.15% by December 2020. It then saw some fluctuations but remained relatively stable around the mid-teens percentages until September 2021, when it started to decline more significantly.
From September 2021 to March 2023, the pretax margin decreased from 15.36% to 12.61%, indicating potential challenges in the company's ability to generate profits before taxes efficiently. However, there was a slight increase to 17.21% by the end of December 2023. Subsequently, the pretax margin improved significantly, reaching a peak of 20.28% by June 30, 2024.
The fluctuations in the pretax margin suggest variability in Southern Company's profitability before accounting for taxes, with periods of decline followed by periods of improvement. Investors and analysts should closely monitor the company's performance drivers during these periods to better understand the factors influencing its profitability.
Peer comparison
Dec 31, 2024