Atmos Energy Corporation (ATO)

Activity ratios

Short-term

Turnover ratios

	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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	4.76	5.91	7.77	10.05	6.33	4.70	7.03	14.68	5.06	5.80	9.72	18.11	6.53	5.89	7.71	9.69	7.06	6.60	8.38	12.64
Receivables turnover	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	12.59	10.17	7.10
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	7.76	—	—	—	48.74	—	178.07	11.97	—	—	62.71	4.27	7.25	—	—	—	—	—	—	—

Atmos Energy Corp.'s activity ratios provide insight into the efficiency of the company's operations:

1. Inventory Turnover:
- Atmos Energy Corp.'s inventory turnover has shown fluctuations over the quarters, ranging from a low of 4.38 in Q4 2022 to a high of 14.68 in Q2 2022.
- The inventory turnover ratio indicates the number of times inventory is sold and replaced within a specific period. A higher turnover ratio generally implies efficient inventory management.

2. Receivables Turnover:
- The receivables turnover ratio has also varied significantly, with values ranging from 5.65 in Q1 2023 to 13.33 in Q3 2023.
- This ratio reflects how efficient the company is at collecting outstanding receivables. Higher turnover ratios suggest a quicker collection of receivables.

3. Payables Turnover:
- The payables turnover data is incomplete, with values available only for Q4 2022 and Q2 2022.
- The payables turnover ratio, when available, would indicate how quickly the company pays its suppliers. A higher ratio can suggest efficient management of payables.

4. Working Capital Turnover:
- The working capital turnover ratios vary significantly, with the highest value of 178.07 in Q3 2022 and the lowest value of 7.76 in Q1 2024.
- This ratio demonstrates how effectively the company utilizes its working capital to generate sales. A higher turnover ratio indicates better efficiency in converting working capital into revenue.

In summary, Atmos Energy Corp.'s activity ratios reflect fluctuations in the efficiency of its operations over the quarters, particularly in managing inventory, receivables, payables, and working capital turnover. Analyzing these ratios provides valuable insights into the company's operational performance and efficiency in managing its resources.

Average number of days

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	76.60	61.79	46.97	36.30	57.64	77.64	51.89	24.87	72.07	62.95	37.55	20.16	55.89	62.02	47.34	37.65	51.71	55.31	43.56	28.88
Days of sales outstanding (DSO)	days	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	29.00	35.89	51.41
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Activity ratios provide insights into how efficiently a company manages its assets and liabilities to generate revenue.

1. Days of Inventory on Hand (DOH):
- DOH measures how many days, on average, a company holds its inventory before selling it.
- Atmos Energy Corp.'s DOH has fluctuated over the quarters, ranging from 24.87 days to 83.26 days, indicating significant variations in inventory management efficiency.
- The trend shows that the company held inventory for longer periods in Q1 2023 and Q4 2022, possibly indicating overstocking or slower sales during those quarters.

2. Days of Sales Outstanding (DSO):
- DSO indicates how long it takes for the company to collect revenue after making a sale.
- There is notable fluctuation in DSO for Atmos Energy Corp., ranging from 27.38 days to 64.55 days over the quarters.
- Lower DSO values in Q3 and Q4 2023 suggest improved efficiency in collecting receivables compared to higher values in Q1 and Q4 2022.

3. Number of Days of Payables:
- Payables days reveal how long the company takes to pay its suppliers. Unfortunately, specific data is missing for multiple quarters.
- The absence of payables information for most quarters limits the comprehensive analysis of the company's payment practices and supplier relationships.

In conclusion, analyzing Atmos Energy Corp.'s activity ratios highlights fluctuations in inventory management efficiency and collection of receivables. More consistent trends in these ratios can indicate better control over working capital and operational efficiency.

Long-term

	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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	—	0.22	0.23	0.25	0.26	0.24	0.24	0.24	0.22	0.23	0.23	0.23	0.21	0.21	0.22	0.22	0.24	0.25	0.26	0.27
Total asset turnover	0.17	0.19	0.20	0.21	0.20	0.19	0.19	0.18	0.17	0.17	0.17	0.16	0.17	0.18	0.19	0.19	0.20	0.22	0.23	0.24

Atmos Energy Corp.'s long-term activity ratios show the efficiency of the company in utilizing its fixed assets and total assets to generate revenue. The fixed asset turnover ratio has been declining over the past eight quarters, from 0.26 in Q1 2023 to 0.19 in Q1 2024. This downward trend indicates that Atmos Energy Corp. is generating less revenue per dollar of fixed assets invested, which could be a concern for the company's asset management efficiency.

Similarly, the total asset turnover ratio has also been decreasing from 0.21 in Q2 2023 to 0.17 in Q1 2024. This decline suggests that the company is becoming less efficient in generating sales relative to its total assets. Overall, the decreasing trend in both fixed asset turnover and total asset turnover ratios may raise questions about the company's asset utilization and efficiency in generating revenue.