The business behind the dividend
| Measure | SO | Median | Formula |
|---|---|---|---|
| Return on equity | 12.1% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 7.2% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $-2.37bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $-2.94bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 25.2% | 15.0% | Operating income ÷ revenue |
| Net margin | 15.0% | 10.2% | Net income ÷ revenue |
| Debt to equity | 1.82x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 2.25x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 0.65x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 2.26x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Long-term debt to working capital — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 12.1% | 13.3% | 12.6% | 11.3% | 8.3% | 11.1% | 17.2% | 9.3% | 3.8% | 10.2% | 11.1% |
| Return on capital employed | 7.2% | 7.7% | 6.6% | 6.6% | 4.7% | 6.7% | 11.2% | 6.4% | 3.4% | 6.7% | 6.6% |
| Operating margin | 25.2% | 26.4% | 23.5% | 20.7% | 15.8% | 23.2% | 34.2% | 16.6% | 10.1% | 22.5% | 22.5% |
| Net margin | 15.0% | 16.4% | 16.0% | 13.2% | 9.8% | 14.7% | 21.0% | 9.1% | 4.0% | 12.7% | 13.2% |
| Debt to equity | 1.82x | 1.77x | 1.82x | 1.67x | 1.80x | 1.61x | 1.52x | 1.65x | 1.84x | 1.72x | 1.72x |
| Current ratio | 0.65x | 0.67x | 0.77x | 0.66x | 0.82x | 0.71x | 0.78x | 0.67x | 0.74x | 0.75x | 0.71x |
| Cash conversion | 2.26x | 2.22x | 1.90x | 1.84x | 2.67x | 2.16x | 1.22x | 3.02x | 6.90x | 1.94x | 2.16x |
How it compares in utilities
Among the 57 utilities companies here measured on GAAP earnings, Southern pays out less than 12 of them. The median for that group is 61.5%, against this company’s 75.0%.
Closest on GAAP earnings
- WEC Energy Group (WEC) 74.2%
- Portland General Electric (POR) 74.9%
- Oneok (OKE) 76.0%
- DT Midstream (DTM) 76.3%
Same sector and same denominator, so the figures are comparable. All 58 in utilities →