Southern Company (SO)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 7,972,000 | 6,782,000 | 5,910,000 | 4,332,000 | 5,295,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 33,208,000 | 31,444,000 | 30,408,000 | 28,164,000 | 28,263,000 |
| Return on total capital | 24.01% | 21.57% | 19.44% | 15.38% | 18.73% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $7,972,000K ÷ ($—K + $33,208,000K)
= 24.01%
The return on total capital for Southern Company has shown a fluctuating trend over the past five years. Starting at 18.73% as of December 31, 2020, the return decreased to 15.38% by the end of 2021. However, there was a rebound in the following years, with the return on total capital increasing to 19.44% in 2022, 21.57% in 2023, and further rising to 24.01% by December 31, 2024. This upward trajectory indicates an improvement in the company's ability to generate profits relative to the total capital employed, demonstrating effective capital utilization and potentially strong financial performance.
Peer comparison
Dec 31, 2024