Atmos Energy Corporation (ATO)

Short-term

Turnover ratios

The inventory turnover ratio for Atmos Energy Corporation has been steadily increasing over the past five years, indicating that the company is efficiently managing its inventory levels and converting inventory into sales at a faster rate. This is a positive sign of operational efficiency.

The receivables turnover ratio has shown some fluctuations but generally remains at a healthy level, reflecting the company's ability to collect revenues from customers in a timely manner. A high receivables turnover ratio suggests that the company has effective credit and collection policies in place.

Unfortunately, the data provided does not include information on the payables turnover ratio or the working capital turnover ratio for Atmos Energy Corporation. These ratios are important in analyzing how efficiently the company manages its accounts payable and working capital, respectively.

Overall, based on the available information, Atmos Energy Corporation appears to be effectively managing its inventory and receivables, which are key components of its operating activities. However, a more comprehensive analysis including additional activity ratios would provide a more holistic view of the company's operational efficiency.

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Average number of days

The Days of Inventory on Hand (DOH) ratio for Atmos Energy Corporation has shown a decreasing trend over the past five years, indicating improved efficiency in managing its inventory levels. In particular, the DOH decreased from 77.64 days in 2022 to 32.54 days in 2024, suggesting that the company has been able to turn over its inventory more quickly.

The Days of Sales Outstanding (DSO) ratio has fluctuated over the years but remained relatively stable. The company was able to collect its accounts receivable more quickly in 2024 compared to the previous year, with a DSO of 33.32 days. This signifies the effectiveness of the company in collecting payments from customers promptly.

Unfortunately, the data for the Number of Days of Payables is not provided, making it challenging to assess the company's payment practices and its impact on cash flow management. It would be beneficial to analyze this ratio to understand how Atmos Energy Corporation manages its payment obligations to suppliers.

Overall, the improvement in the DOH and stable DSO ratios suggest that Atmos Energy Corporation has enhanced its operational efficiency in inventory management and receivables collection. However, a more comprehensive analysis incorporating the payables turnover would provide a fuller picture of the company's working capital management.

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Long-term

The long-term activity ratios of Atmos Energy Corporation have shown a pattern of fluctuation over the past five years. The fixed asset turnover ratio, which measures the efficiency of the company in generating revenue from its fixed assets, has been relatively stable, ranging from 0.21 to 0.24, with a slight dip in the most recent year.

On the other hand, the total asset turnover ratio, which indicates how efficiently the company is utilizing all its assets to generate sales, has also exhibited variability over the years, ranging from 0.17 to 0.19. Although there is no clear trend in this ratio, it appears that the company has been able to maintain a relatively consistent level of asset utilization efficiency.

Overall, the long-term activity ratios of Atmos Energy Corporation suggest that the company has been moderately effective in generating revenue from its fixed assets and utilizing its total assets to drive sales over the past five years. Further analysis and comparison with industry benchmarks may provide more insight into the company's operational efficiency and asset utilization strategies.