Southern Company (SO)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	33,208,000	33,298,000	32,449,000	31,920,000	31,444,000	31,377,000	30,672,000	30,528,000	30,408,000	31,481,000	28,973,000	28,588,000	28,164,000	28,980,000	28,490,000	28,773,000	28,263,000	28,580,000	27,961,000	28,016,000
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%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $4,401,000K ÷ $33,208,000K
= 13.25%

Southern Company's Return on Equity (ROE) has shown fluctuations over the past few years.

From March 31, 2020, to December 31, 2021, there was a gradual decline in ROE from 12.63% to 8.55%. This could indicate a decrease in the company's profitability relative to its equity during this period.

However, starting from March 31, 2022, there was a slight increase in ROE to 8.07%, followed by a more significant improvement to 10.50% by June 30, 2022. This uptrend continued, with ROE reaching 14.20% by June 30, 2024.

The highest ROE during the period under review was recorded on June 30, 2024, at 14.20%. This indicates that Southern Company was able to generate more profit relative to its shareholders' equity at that point in time.

Overall, the company's ROE has shown variability, with some fluctuations over the quarters. It is essential to delve deeper into the underlying factors driving these changes to assess the company's performance comprehensively.