Southern Company (SO) 10-K Red Flags
Risk signals extracted deterministically from Southern Company’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.
Detected red flags (14)
- Receivables outpacing revenue: Accounts receivable grew +8.1% YoY vs revenue growth of -13.8%. The +21.8% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
- NEW: Going concern doubt in latest filing: The term "going concern" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 9 filing(s).
- Operating cash flow exceeds net income: OCF is 1.90x net income, indicating high earnings quality — cash conversion is strong and accruals are not inflating reported profits.
- NEW: Off-balance sheet arrangements: Off-balance sheet arrangements appears in recent filings but not in the prior 24-month period. Monitor for materiality.
- Endogenous analysis: Revenue grew -13.8% but receivables grew +8.1% — the receivables-to-revenue gap suggests growth may be partially driven by extended credit terms rather than genuine demand. If DSO continues to rise, a revenue reversal or bad-debt charge could follow.
- 1 new XBRL disclosure(s) in latest filing — expanding reporting scope.
- 20 disclosure(s) dropped from prior year — reduced reporting granularity.
- 2 new risk-language term(s) detected in filing text: Going concern doubt, Off-balance sheet arrangements.
- Revenue declined **+13.8%** YoY to $25.25B.
- 5-year revenue CAGR **+3.3%**; 10y CAGR +3.5%.
- Composite risk: High.
- Liquidity current ratio 0.65 (stretched).
- Receivables outpacing revenue: Accounts receivable grew +8.1% YoY vs revenue growth of -13.8%. The +21.8% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
- NEW: Going concern doubt in latest filing: The term "going concern" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 9 filing(s).
Filings & ownership
- Latest annual report (10-K) filed Feb 19, 2026.
- Latest quarterly report (10-Q) filed Apr 30, 2026.
- 9 recent 8-K material-event filings in the index.
- Recent insider Form 4s: 0 buy vs 0 sell transactions.
Full SO analyst report
Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.
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