Southern Company (SO)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 4,401,000 | 3,976,000 | 3,535,000 | 2,408,000 | 3,134,000 |
| Total assets | US$ in thousands | 145,180,000 | 139,331,000 | 134,891,000 | 127,534,000 | 122,935,000 |
| ROA | 3.03% | 2.85% | 2.62% | 1.89% | 2.55% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $4,401,000K ÷ $145,180,000K
= 3.03%
The return on assets (ROA) for Southern Company has shown variable performance over the past five years. In December 31, 2020, the ROA was 2.55%, indicating that the company generated $0.0255 in profit for every dollar of assets. This decreased to 1.89% by December 31, 2021, suggesting a decline in profitability relative to its asset base.
However, in the following years, the company's ROA demonstrated improvement. By December 31, 2022, the ROA had increased to 2.62%, reflecting a better utilization of assets to generate profit. This positive trend continued in December 31, 2023, with the ROA further improving to 2.85%.
Notably, by December 31, 2024, Southern Company achieved a ROA of 3.03%, signaling the company's effective management of assets to generate higher returns. Overall, the company's ROA trend indicates a fluctuating performance, with recent years showing an upward trajectory, which could be a positive indicator of improved operational efficiency and profitability.
Peer comparison
Dec 31, 2024