Southern Company (SO)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 41.11% | 40.92% | 40.62% | 43.51% | 46.36% | 42.19% | 38.70% | 37.50% | 36.95% | 38.47% | 40.47% | 41.37% | 43.52% | 45.98% | 47.09% | 48.45% | 48.57% | 47.39% | 47.29% | 46.28% |
| Operating profit margin | 26.26% | 27.12% | 26.44% | 24.74% | 23.07% | 19.54% | 18.86% | 19.16% | 19.62% | 17.50% | 17.14% | 14.61% | 16.00% | 21.18% | 22.29% | 24.55% | 23.98% | 24.02% | 24.45% | 25.25% |
| 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% |
| Net profit margin | 16.47% | 17.87% | 17.64% | 16.70% | 15.75% | 11.37% | 10.98% | 11.37% | 11.90% | 12.18% | 11.76% | 9.67% | 10.42% | 13.40% | 14.47% | 15.99% | 15.38% | 15.80% | 15.83% | 16.83% |
The profitability ratios of Southern Company, as reflected in the provided data, have shown some fluctuations over the reporting periods. The gross profit margin, which indicates the percentage of revenue that exceeds the cost of goods sold, has experienced a gradual decline from 46.28% as of March 31, 2020, to 41.11% by December 31, 2024, before showing a slight improvement to 41.11% by the end of the period.
The operating profit margin, which measures operating income as a percentage of revenue, displayed a similar pattern, starting at 25.25% on March 31, 2020, reaching a low of 16.00% by December 31, 2021, and then recovering to 26.26% by the end of the period.
The pretax margin, representing the percentage of each dollar of revenue that results in pre-tax profit, followed a comparable trend, starting at 19.54% on March 31, 2020, declining to 11.15% by December 31, 2021, and improving to 19.57% by the end of the reporting period.
The net profit margin, which indicates the percentage of revenue that represents net income, exhibited fluctuations as well, with a decrease from 16.83% as of March 31, 2020, to 10.42% on December 31, 2021, before seeing an upturn to 16.47% by the end of the period.
Overall, the company's profitability has shown variability over the reporting periods, with some fluctuations in the margins, suggesting potential changes in operating efficiency, cost management, and revenue generation strategies. Further analysis and comparison with industry benchmarks would be beneficial to assess the company's performance accurately.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 3.03% | 3.28% | 3.25% | 3.03% | 2.85% | 2.16% | 2.21% | 2.46% | 2.58% | 2.55% | 2.33% | 1.79% | 1.89% | 2.35% | 2.51% | 2.71% | 2.55% | 2.59% | 2.72% | 2.98% |
| Return on total capital | 23.73% | 24.02% | 23.73% | 21.85% | 20.77% | 18.40% | 18.68% | 19.49% | 19.17% | 16.67% | 16.46% | 13.83% | 15.41% | 18.06% | 19.07% | 20.00% | 18.89% | 18.19% | 19.48% | 20.46% |
| Return on equity (ROE) | 13.25% | 14.18% | 14.20% | 13.30% | 12.65% | 9.51% | 9.90% | 10.84% | 11.46% | 10.84% | 10.50% | 8.07% | 8.55% | 10.39% | 11.10% | 11.82% | 11.09% | 11.15% | 11.63% | 12.63% |
Southern Company's profitability ratios show a mixed performance over the analyzed periods.
- Operating return on assets (Operating ROA) declined gradually from March 31, 2020, to September 30, 2021. Thereafter, it demonstrated some fluctuation but ended the period at a higher level compared to the initial points.
- Return on assets (ROA) exhibited a downward trend from March 31, 2020, to December 31, 2021. Subsequently, it displayed an uptrend throughout the remaining period, reaching a level similar to the initial points.
- Return on total capital declined from March 31, 2020, to March 31, 2022, rebounded from that point onwards, and showed a consistent increase in the subsequent dates, reaching the highest level by December 31, 2024.
- Return on equity (ROE) decreased from March 31, 2020, to September 30, 2021, and experienced fluctuations until December 31, 2023. However, it demonstrated significant growth in the last two quarters, albeit remaining slightly below the levels seen at the beginning of the analysis.
Overall, Southern Company's profitability ratios reflect varying trends over the analyzed periods, with some ratios showing improvement towards the end of the period, indicating potential enhancements in the company's profitability performance.