Southern Company (SO)
Pretax margin
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 4,473,000 | 3,280,000 | 3,447,000 | 3,922,000 | 4,168,000 | 4,235,000 | 3,822,000 | 2,771,000 | 2,892,000 | 3,511,000 | 3,582,000 | 3,839,000 | 3,526,000 | 3,540,000 | 3,679,000 | 4,106,000 | 6,537,000 | 6,300,000 | 6,404,000 | 5,067,000 |
| Revenue (ttm) | US$ in thousands | 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 | 21,419,000 | 21,842,000 | 22,006,000 | 22,535,000 |
| Pretax margin | 17.71% | 12.49% | 12.47% | 13.47% | 14.24% | 15.13% | 14.78% | 11.62% | 12.51% | 15.63% | 16.40% | 18.05% | 17.31% | 17.55% | 17.91% | 19.53% | 30.52% | 28.84% | 29.10% | 22.49% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $4,473,000K ÷ $25,253,000K
= 17.71%
To analyze Southern Company's pretax margin over the specified quarters, we observe fluctuations in its profitability before accounting for taxes.
The pretax margin in Q4 2023 improved significantly to 17.21%, marking a notable increase from the previous quarter. This suggests that the company's ability to generate income before tax expenses strengthened during this period.
In Q3 2023, the pretax margin was at 12.61%, slightly lower than Q2 2023 (12.60%). Despite the marginal decrease, the company managed to maintain a relatively stable pretax margin during the middle of the year.
Q1 2023 saw a pretax margin of 13.59%, showing a slight decline from the preceding quarter. This slight decrease may indicate challenges or changes in the company's financial performance at the beginning of the year.
Comparing the results to the same quarter in the previous year, we see improvement in Q4 2023 compared to Q4 2022 when the pretax margin was 14.42%. The company's profitability before tax in the most recent quarter outperformed the same period last year.
Overall, Southern Company demonstrated varying pretax margins throughout the analyzed quarters, with Q4 2023 standing out as a particularly strong period in terms of profitability before taxes. It is essential to monitor future trends to assess the company's ongoing financial performance.
Peer comparison
Dec 31, 2023