Southern Company (SO)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.65 | 0.00 | 0.00 | 0.00 | 0.64 | 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 | 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 |
| Financial leverage ratio | 4.43 | 3.92 | 3.96 | 3.90 | 4.44 | 3.75 | 3.93 | 3.91 | 4.58 | 3.82 | 3.81 | 3.76 | 4.39 | 3.76 | 3.71 | 3.69 | 4.32 | 3.67 | 3.66 | 3.68 |
The solvency ratios of Southern Company over the past eight quarters show a consistent and relatively stable financial position in terms of its debt obligations and leverage.
The Debt-to-assets ratio remained around 0.44 in the last four quarters, indicating that Southern Company has maintained a healthy balance between its debt levels and assets. This suggests that a significant portion of the company's assets is financed through debt.
The Debt-to-capital ratio also remained stable at 0.66 over the same period. This implies that approximately two-thirds of Southern Company's capital structure is funded by debt, while the remaining portion is from equity.
The Debt-to-equity ratio fluctuated between 1.93 and 1.98, with a slight increase from 1.89 to 1.98 in Q2 2023. This indicates that the company's debt levels relative to equity have increased slightly over the past two quarters.
The Financial leverage ratio, which measures the extent to which a company uses debt to finance its operations, fluctuated between 4.29 and 4.55. This suggests that Southern Company has been operating with a moderate level of financial leverage.
Overall, Southern Company's solvency ratios suggest that the company has been managing its debt levels effectively, maintaining a reasonable balance between debt and equity financing. However, the slight increase in the Debt-to-equity ratio warrants further monitoring to ensure long-term financial stability and sustainability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.38 | 2.00 | 2.14 | 2.43 | 2.66 | 2.52 | 2.35 | 1.89 | 2.01 | 2.60 | 2.67 | 2.88 | 2.68 | 3.13 | 4.53 | 4.86 | 7.25 | 5.78 | 4.39 | 3.59 |
The interest coverage ratio for Southern Company has shown a declining trend from Q1 2022 to Q4 2023. The ratio, which measures the company's ability to cover its interest payments with its operating income, decreased from 3.00 in Q2 2022 to 2.41 in Q4 2023. This indicates that the company may be experiencing some challenges in meeting its interest obligations with its current level of operating income. However, it is important to note that the interest coverage ratio remains above 1, indicating that the company is still able to cover its interest expenses, albeit with less cushion compared to previous periods. Further monitoring of this ratio will be necessary to assess the company's financial health and ability to meet its debt obligations.