Southern Company (SO)

Financial leverage ratio

		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
Total assets	US$ in thousands	145,180,000	143,956,000	141,937,000	140,120,000	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
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
Financial leverage ratio		4.37	4.32	4.37	4.39	4.43	4.41	4.47	4.41	4.44	4.26	4.51	4.50	4.53	4.41	4.42	4.36	4.35	4.31	4.28	4.24

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $145,180,000K ÷ $33,208,000K
= 4.37

The financial leverage ratio of Southern Company has shown a fluctuating trend over the reporting periods analyzed. The ratio started at 4.24 as of March 31, 2020, and gradually increased to 4.53 by December 31, 2021, signifying an increasing level of leverage during this period. However, from March 31, 2022, the ratio began to fluctuate within a narrower range, hovering between 4.26 and 4.51 until December 31, 2024.

Overall, the financial leverage ratio indicates that Southern Company has been utilizing a moderate level of financial leverage to support its operations and growth. It is essential for the company to monitor and manage its leverage effectively to maintain a healthy balance between debt and equity in its capital structure.