Southern Company (SO)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 92.51% | 68.50% | 70.05% | 71.52% | 71.76% | 94.42% | 94.12% | 92.80% | 90.16% | 92.86% | 92.37% | 92.63% | 93.08% | 91.95% | 91.87% | 92.58% | 94.74% | 94.84% | 95.15% | 94.24% |
| Operating profit margin | 23.07% | 18.11% | 17.50% | 17.88% | 18.34% | 17.50% | 17.14% | 14.61% | 16.00% | 21.18% | 22.29% | 24.55% | 23.98% | 24.02% | 24.45% | 25.25% | 36.12% | 34.91% | 35.38% | 28.87% |
| 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% |
| Net profit margin | 15.75% | 10.98% | 10.61% | 11.00% | 11.52% | 12.95% | 12.59% | 10.57% | 11.36% | 13.40% | 14.47% | 15.99% | 15.38% | 15.72% | 15.75% | 16.76% | 22.13% | 20.96% | 20.11% | 14.96% |
The profitability ratios of Southern Company have showed fluctuations over the past eight quarters. The gross profit margin, which measures the percentage of revenue that exceeds the cost of goods sold, has shown an upward trend, increasing from 59.60% in Q4 2022 to 70.49% in Q4 2023. This indicates an improvement in the company's ability to generate profit from its core operations.
The operating profit margin, which reflects the efficiency of the company in managing its operating expenses, has also shown some variability but generally remained at healthy levels, ranging between 18.64% and 22.80% over the past eight quarters.
The pretax margin, representing the percentage of earnings that the company retains after accounting for all operating expenses but before taxes, has shown fluctuations, with the highest value of 17.21% in Q4 2023. This ratio reflects Southern Company's ability to generate profits before tax expenses.
Finally, the net profit margin, which indicates the percentage of revenue that remains as profit after all expenses have been deducted, has also fluctuated, ranging between 9.60% and 15.74%. Despite some variability, the net profit margin has generally shown an increasing trend over the analyzed quarters, which suggests that Southern Company has been effective in managing its expenses and improving its bottom line profitability.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.18% | 3.44% | 3.53% | 3.86% | 3.98% | 3.66% | 3.39% | 2.71% | 2.90% | 3.72% | 3.87% | 4.16% | 3.97% | 3.93% | 4.20% | 4.47% | 6.52% | 6.48% | 6.78% | 5.70% |
| Return on assets (ROA) | 2.85% | 2.09% | 2.14% | 2.38% | 2.50% | 2.71% | 2.49% | 1.96% | 2.06% | 2.35% | 2.51% | 2.71% | 2.55% | 2.57% | 2.70% | 2.96% | 3.99% | 3.89% | 3.85% | 2.96% |
| Return on total capital | 6.41% | 13.47% | 13.97% | 15.06% | 6.32% | 13.72% | 13.32% | 10.58% | 13.27% | 14.20% | 14.74% | 15.65% | 17.46% | 14.78% | 15.58% | 16.48% | 28.13% | 23.76% | 24.78% | 21.00% |
| Return on equity (ROE) | 12.65% | 8.17% | 8.47% | 9.27% | 11.09% | 10.15% | 9.79% | 7.66% | 9.42% | 8.99% | 9.57% | 10.20% | 11.20% | 9.67% | 10.03% | 10.94% | 17.23% | 14.27% | 14.08% | 10.89% |
Southern Company's profitability ratios show a relatively stable performance over the quarters analyzed. Operating return on assets (Operating ROA) fluctuated between 3.76% and 4.32% during the past eight quarters, with a slight downward trend in the most recent quarter to 4.13%. This metric indicates the company's ability to generate profits from its assets before interest and taxes.
Return on assets (ROA) also remained relatively consistent, ranging from 1.78% to 2.85%. The company's ability to generate profits from all sources of financing has improved over the quarters, with the most recent quarter showing a ROA of 2.85%.
Return on total capital fluctuated between 5.79% and 6.83%, with a slight decline observed in the most recent quarter at 6.32%. This metric reflects the company's overall efficiency in generating profits from both debt and equity capital.
Return on equity (ROE) showed a consistent improvement, ranging from 8.09% to 12.64%. The company's ability to generate profits for its shareholders has been increasing steadily, with the most recent quarter showing a ROE of 12.64%.
Overall, Southern Company's profitability ratios suggest a solid performance in generating profits from its assets and capital, as well as providing returns to its shareholders.