Southern Company (SO)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios of Southern Company over the past several years indicate a consistently strong financial position in terms of its ability to meet its financial obligations.
- Debt-to-assets ratio: Southern Company's debt-to-assets ratio has remained consistently at 0.00, indicating that the company does not rely heavily on debt to finance its operations and that its assets significantly outweigh its total debt.
- Debt-to-capital ratio: Similarly, the debt-to-capital ratio has also been consistently at 0.00, suggesting that Southern Company's capital structure is primarily financed through equity rather than debt.
- Debt-to-equity ratio: The debt-to-equity ratio has also consistently remained at 0.00, indicating that the company's financial leverage is low and that it has a relatively lower level of debt compared to its equity.
- Financial leverage ratio: The financial leverage ratio, which provides a broader view of the company's debt burden, has shown some fluctuations over the years but generally remained around 4.30. This indicates that Southern Company's financial leverage has been relatively stable and is not overly burdensome.
Overall, based on the solvency ratios analyzed, Southern Company appears to have a strong and stable financial position with low debt levels and a healthy balance between debt and equity in its capital structure.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.87 | 2.98 | 2.95 | 2.76 | 2.67 | 2.43 | 2.53 | 2.78 | 2.88 | 2.70 | 2.53 | 2.14 | 2.36 | 2.86 | 2.98 | 3.17 | 2.93 | 2.91 | 3.07 | 3.25 |
The interest coverage ratio for Southern Company has fluctuated over the period provided. Based on the data:
- The interest coverage ratio ranged between 2.14 to 3.25 as of March 31, 2020, indicating the ability of the company to cover its interest expenses by its operating income.
- The ratio decreased gradually to 2.36 as of December 31, 2021, indicating a slight decline in the company's ability to cover interest costs.
- From March 31, 2022, to June 30, 2024, the interest coverage ratio fluctuated between 2.14 to 2.98, showing some variability in the company's ability to meet its interest obligations.
Overall, the trend in the interest coverage ratio suggests that Southern Company has experienced some fluctuations in its ability to cover interest expenses with operating income over the period provided. Investors and lenders may monitor this ratio to assess the company's financial health and ability to meet its debt obligations.