The company maintains a strained liquidity position with a current ratio of 0.65 and a debt-to-equity ratio that has remained elevated between 1.76 and 1.93 over the last seven quarters.
| Total Current Assets | 9.96B | 10.92B |
| Cash & Short-Term Investments | - | - |
| Cash Only | 981M | 1.64B |
| Short-Term Investments | 0 | 0 |
| Accounts Receivable | - | - |
| Days Sales Outstanding | - | - |
| Inventory | 3.17B | 3.33B |
| Days Inventory Outstanding | 74.64 | 79.88 |
| Other Current Assets | 1.53B | 1.55B |
| Total Non-Current Assets | 147.07B | 144.8B |
| Property, Plant & Equipment | 118.16B | 116.44B |
| Fixed Asset Turnover | 0.26x | 0.25x |
| Goodwill | 5.16B | 5.16B |
| Intangible Assets | 294M | 300M |
| Long-Term Investments | 16.89B | 4.26B |
| Other Non-Current Assets | - | - |
| Total Assets | 157.03B | 155.72B |
| Asset Turnover | 0.20x | 0.19x |
| Asset Growth % | 19.74% | - |
| Total Current Liabilities | 15.32B | 16.89B |
| Accounts Payable | 2.91B | 3.71B |
| Days Payables Outstanding | 73.2 | 88.92 |
| Short-Term Debt | - | - |
| Deferred Revenue (Current) | 0 | - |
| Other Current Liabilities | 3.1B | 3.75B |
| Current Ratio | 0.65x | 0.65x |
| Quick Ratio | 0.44x | 0.45x |
| Cash Conversion Cycle | 1.44 | - |
| Total Non-Current Liabilities | 101.8B | 99.97B |
| Long-Term Debt | 67.15B | 65.65B |
| Capital Lease Obligations | 0 | - |
| Deferred Tax Liabilities | 0 | - |
| Other Non-Current Liabilities | - | - |
| Total Liabilities | 117.12B | 116.85B |
| Total Debt | 76B | 74.08B |
| Net Debt | 75.02B | 72.44B |
| Debt / Equity | 1.90x | 1.91x |
| Debt / EBITDA | 5.63x | 5.56x |
| Net Debt / EBITDA | 5.56x | 5.44x |
| Interest Coverage | - | 2.54x |
| Total Equity | 39.91B | 38.87B |
| Equity Growth % | 16.91% | - |
| Book Value per Share | 34.77 | 34.43 |
| Total Shareholders' Equity | 37.12B | 36.02B |
| Common Stock | 5.59B | 5.55B |
| Retained Earnings | 15.38B | 14.86B |
| Treasury Stock | -60M | -59M |
| Accumulated OCI | -73M | -75M |
| Minority Interest | 2.79B | 2.85B |
High leverage capital intensity
As reported in financial statements, Southern Company has grown total assets to $157.0 billion by 2026Q1, yet the equity base has expanded at a slower rate, resulting in a persistent reliance on debt financing to fund the company's ongoing capital-intensive infrastructure development and utility operations.
The consistent growth in total assets, driven primarily by PPE, suggests a business model that requires continuous, heavy investment. However, the widening gap between asset growth and equity accumulation indicates that the company is increasingly leveraged to maintain its operational footprint.
Based on the company's reported figures, the debt-to-equity ratio reached 1.90 in 2026Q1, reflecting a sustained reliance on external financing that has remained stubbornly high, hovering between 1.76 and 1.93 over the last seven quarters as the firm manages its significant debt obligations.
This level of leverage appears to be a structural necessity for a regulated utility with high capital expenditure requirements. Investors should monitor whether the company can manage these debt levels without further diluting equity or facing increased interest expense pressure in a volatile rate environment.
According to recent SEC filings, Southern Company's net PPE has climbed to $118.2 billion as of 2026Q1, representing the vast majority of the firm's asset base and underscoring the highly asset-heavy nature of its regulated electric utility business model and infrastructure requirements.
The concentration of value in physical assets suggests that the company's competitive position is tied to its regulated rate base. While this provides a stable foundation, it also limits balance sheet flexibility and necessitates constant reinvestment to maintain operational efficiency.
As indicated by the provided balance sheet data, the current ratio has remained consistently below 1.0, reaching 0.65 in 2026Q1, which suggests that the company maintains a very thin liquidity buffer relative to its short-term liabilities and ongoing operational cash requirements.
A current ratio consistently below unity implies that the company relies heavily on its ability to roll over debt or access capital markets to meet immediate obligations. This liquidity profile may indicate vulnerability to sudden shifts in credit market conditions or unexpected operational cash shortfalls.
Quick answers to the most common questions about buying SOMN stock.
As of 2025, The Southern Company (SOMN) had total assets of $155.72B including $10.92B in current assets.
The Southern Company (SOMN) carries total debt of $74.08B. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
The Southern Company (SOMN) has total shareholders' equity (book value) of $36.02B ($34.43 book value per share). Book value represents the net worth of the company belonging to common stock holders.
The Southern Company (SOMN) reported a current ratio of 0.65x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.