Southern Company (SO)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 4,401,000 | 4,722,000 | 4,609,000 | 4,244,000 | 3,977,000 | 2,984,000 | 3,037,000 | 3,310,000 | 3,484,000 | 3,411,000 | 3,041,000 | 2,306,000 | 2,409,000 | 3,011,000 | 3,161,000 | 3,401,000 | 3,134,000 | 3,188,000 | 3,253,000 | 3,539,000 |
| Total assets | US$ in thousands | 145,180,000 | 143,956,000 | 141,937,000 | 140,120,000 | 139,331,000 | 138,321,000 | 137,116,000 | 134,756,000 | 134,891,000 | 134,005,000 | 130,769,000 | 128,639,000 | 127,534,000 | 127,861,000 | 125,907,000 | 125,393,000 | 122,935,000 | 123,158,000 | 119,731,000 | 118,852,000 |
| 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% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $4,401,000K ÷ $145,180,000K
= 3.03%
Based on the provided data, the return on assets (ROA) for Southern Company has fluctuated over the quarters. ROA indicates the company's ability to generate profit from its assets.
From March 31, 2020, to December 31, 2021, Southern Company's ROA experienced a gradual decline from 2.98% to 1.89%. This downward trend could indicate inefficiency in utilizing its assets to generate earnings during this period.
However, from March 31, 2022, Southern Company's ROA started to improve, reaching 3.03% by December 31, 2024. This upward trend suggests that the company became more effective in generating profit from its assets, potentially through improved operational efficiency or strategic decision-making.
Overall, Southern Company's ROA shows variability over the quarters, with a mix of declining and improving performance. It would be essential for stakeholders to closely monitor this metric to assess the company's effectiveness in utilizing its assets to generate returns.
Peer comparison
Dec 31, 2024