Southern Company (SO)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 33,208,000 | 31,444,000 | 30,408,000 | 28,164,000 | 28,263,000 |
| ROE | 13.25% | 12.64% | 11.63% | 8.55% | 11.09% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $4,401,000K ÷ $33,208,000K
= 13.25%
To analyze Southern Company's return on equity (ROE) over the years, we observe a fluctuating trend. In December 2020, the ROE was reported at 11.09%, indicating a decent return for shareholders. However, by the end of 2021, the ROE decreased to 8.55%, reflecting a decline in profitability or efficiency in utilizing shareholder equity.
The ROE saw a positive upturn in 2022, reaching 11.63%, suggesting the company was able to generate improved returns for shareholders. This positive momentum continued into 2023, with the ROE further increasing to 12.64%, indicating enhanced profitability and efficiency.
By the end of 2024, Southern Company's ROE peaked at 13.25%, signaling a strong performance in generating returns on equity for its shareholders. Overall, the upward trend from 2021 to 2024 indicates an improvement in the company's ability to utilize shareholder equity effectively to generate profits.
Peer comparison
Dec 31, 2024