Southern Co (Southern Co) ROCE % : 6.16% (As of Mar. 2024)

View and export this data going back to 2019. Start your Free Trial

What is Southern Co ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Southern Co's annualized ROCE % for the quarter that ended in Mar. 2024 was 6.16%.

Southern Co ROCE % Historical Data

The historical data trend for Southern Co's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Southern Co ROCE % Chart

Southern Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

Get a 7-Day Free Trial

7.93

4.90

3.88

5.30

5.54

Southern Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															4.93	5.00	7.55	4.57	6.16

Southern Co ROCE % Calculation

Southern Co's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	6791	/	( ( (134891 - 15724)	+	(139331 - 13467) )	/ 2 )
	=	6791	/	( (119167	+	125864)	/ 2 )
	=	6791	/	122515.5
	=	5.54 %

Southern Co's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	7836	/	( ( (139331 - 13467)	+	(140120 - 11458) )	/ 2 )
	=	7836	/	( ( 125864	+	128662 )	/ 2 )
	=	7836	/	127263
	=	6.16 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

Southern Co (NYSE:SOLN) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Southern Co ROCE % Related Terms

Thank you for viewing the detailed overview of Southern Co's ROCE % provided by GuruFocus.com. Please click on the following links to see related term pages.

Southern Co (Southern Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Southern Co (NYSE:SOLN) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

SO:USA SOT:Germany T1SO34:Brazil

Address

30 Ivan Allen Jr. Boulevard, Northwest, Atlanta, GA, USA, 30308

Website

https://www.southerncompany.com

Southern is one of the largest utilities in the U.S. The company serves 9 million customers with vertically integrated electric utilities in three states and natural gas distribution utilities in four states. It owns 50 gigawatts of rate-regulated generating capacity, primarily for serving customers in Georgia, Alabama, and Mississippi. Subsidiary Southern Power owns 13 gigawatts of natural gas generation and renewable energy across the U.S. and sells the electricity primarily under long-term contracts.