Southern Company (SO)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 31,444,000 | 35,304,000 | 34,648,000 | 34,562,000 | 30,408,000 | 35,718,000 | 33,255,000 | 32,920,000 | 27,874,000 | 33,510,000 | 33,037,000 | 33,359,000 | 27,972,000 | 32,791,000 | 32,252,000 | 32,207,000 | 27,505,000 | 32,082,000 | 31,422,000 | 30,978,000 |
| Debt-to-equity ratio | 1.89 | 0.00 | 0.00 | 0.00 | 1.80 | 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-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $59,400,000K ÷ $31,444,000K
= 1.89
The debt-to-equity ratio of Southern Company has shown a gradual increase over the past eight quarters, indicating a growing reliance on debt financing compared to equity. The ratio ranged from 1.76 in Q3 2022 to a peak of 1.98 in Q2 2023. This upward trend suggests that the company's debt levels relative to its equity have been on the rise, which may increase financial risk and interest expenses. It is important for investors and stakeholders to monitor this ratio closely to assess the company's ability to meet its debt obligations and sustain a healthy balance between debt and equity financing.
Peer comparison
Dec 31, 2023