Southern Company (SO)

Debt-to-assets ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	59,400,000	—	—	—	54,600,000	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total assets	US$ in thousands	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	118,700,000	117,591,000	114,867,000	114,096,000
Debt-to-assets ratio		0.43	0.00	0.00	0.00	0.40	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $59,400,000K ÷ $139,331,000K
= 0.43

The debt-to-assets ratio for Southern Company has remained relatively stable over the past eight quarters, ranging from 0.41 to 0.44. This ratio indicates that, on average, the company finances approximately 44% of its total assets through debt, while the remaining 56% is funded through equity.

A ratio of 0.44 suggests that Southern Company relies moderately on debt to finance its operations and investments. The consistency in the ratio indicates that the company's debt levels relative to its total assets have been fairly consistent over the past two years.

It is essential for investors and analysts to monitor changes in the debt-to-assets ratio over time to assess the company's risk profile and financial health, as significant increases in this ratio could signal a higher level of financial leverage and potential risks associated with debt obligations.