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Southern Company SO Operating margin

Discontinued — last reported Q3 '22

Operating margin at other companies

Entergy logo
EntergyETR
27.1%+8.4pp
Dominion Energy logo
Dominion EnergyD
26.3%+1.9pp
Nextra Energy logo
Nextra EnergyNEE
29.8%-0.8pp
Duke Energy logo
Duke EnergyDUK
27.2%+1.6pp
CNP
CenterPoint EnergyCNP
22.5%-0.1pp
PG&E logo
PG&EPCG
19.4%+1.4pp

Other financials

Income statement

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Revenue$8.4B+8.0%
Operating income$2.0B+0.4%
Net income$1.4B+1.7%
EPS (diluted)$1.20-0.8%

Balance sheet

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Cash & equivalents$987.0M-57.7%
Total debt$75.3B
Total equity$39.9B+7.2%
Total assets$157.03B

Cash flow

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Operating cash flow$1.2B-1.9%
CapEx$2.9B+20.8%
Free cash flow-$1.7B-44.7%

Valuation

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Market cap$104.31B+7.1%
Enterprise value$178.58B
P/E18.7×
P/S3.3×-0.4×

Profitability

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Net margin13.1%

Returns & leverage

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Return on equity9%
Debt / equity1.9×
Current ratio0.7×

Where this comes from

Calculated from Southern Company’s reported figures.

Based on trailing twelve months.

The official record: Southern Company’s 10-Q, filed November 2, 2023, on SEC EDGAR. View the filing →

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Questions, answered.

What is Southern Company's operating margin?
Southern Company (SO) reported operating margin of 18.7% in Q3 2022.
How has Southern Company's operating margin changed year-over-year?
Southern Company's operating margin decreased by 11.8% year-over-year, from 21.2% to 18.7%.
What does operating margin mean?
The profit left from core operations for every dollar of sales, before interest and taxes.
How do you interpret operating margin?
Expanding operating margin shows operating leverage — revenue growing faster than the cost base. Compression points to rising overhead, pricing pressure, or investment ahead of revenue.
How does operating margin compare across companies?
Strong cross-company signal within a sector. Capital-light businesses sustain higher operating margins than capital-intensive ones.