Atmos Energy Corporation (ATO)

Days of sales outstanding (DSO)

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Receivables turnover		10.95	10.46	6.80	6.11	12.48	13.33	8.71	5.65	11.19	10.79	6.79	6.82	9.94	11.38	6.82	5.81	12.23	11.80	7.37	6.66
DSO	days	33.32	34.90	53.67	59.73	29.25	27.38	41.89	64.55	32.63	33.84	53.77	53.55	36.74	32.06	53.54	62.86	29.83	30.94	49.56	54.83

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.95
= 33.32

The Days Sales Outstanding (DSO) ratio for Atmos Energy Corporation has varied over the past several quarters. DSO measures the average number of days it takes for a company to collect revenue after a sale is made.

Analyzing the trend, we observed that the DSO was relatively low in the recent quarters, with values ranging from 27 to 36 days, indicating a quicker collection of accounts receivable. However, in the earlier periods, DSO values were higher, reaching up to 64 days in some quarters, suggesting a longer time taken to collect revenue.

A decreasing trend in DSO is generally positive, as it implies better efficiency in collecting receivables and turning them into cash. A lower DSO also indicates that the company is managing its credit and collection processes effectively.

It would be advisable for Atmos Energy Corporation to continue monitoring its DSO ratio to ensure efficient management of accounts receivable and timely collection of revenue. A sustained decrease in DSO over time could contribute to improved cash flow and overall financial health.