Atmos Energy Corporation (ATO)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	4,165,193	4,094,891	4,056,075	3,949,815	4,275,355	4,410,341	4,564,037	4,672,887	4,201,667	4,047,423	3,836,547	3,505,797	3,407,487	3,314,017	3,201,459	2,860,054	2,821,137	2,789,906	2,782,649	2,899,624
Receivables	US$ in thousands	380,214	391,551	596,433	646,401	342,572	330,827	523,741	826,416	375,619	375,257	565,184	514,333	342,967	291,122	469,595	492,526	230,595	236,466	377,817	435,616
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

September 30, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $4,165,193K ÷ $380,214K
= 10.95

The receivables turnover ratio measures how efficiently a company collects cash from its customers. A higher receivables turnover indicates more effective management of accounts receivable.

Analyzing the data provided for Atmos Energy Corporation, we see some fluctuations in the receivables turnover ratio over the past years. The ratio has generally ranged between 5.65 and 13.33, with some variability in between. In the most recent period, ending in September 2024, the receivables turnover was 10.95, indicating a moderate level of efficiency in collecting receivables.

Comparing this figure to previous periods, we observe that the ratio has been relatively stable, with occasional fluctuations. The highest ratio was observed in June 2023 at 13.33, while the lowest was in December 2022 at 5.65. These variations may be attributed to changes in the company's credit policies, sales volume, or the overall economic environment.

Overall, Atmos Energy Corporation has shown consistent management of its accounts receivable, with the receivables turnover remaining within a reasonable range over the analyzed periods. The company's ability to efficiently collect cash from customers is essential for maintaining healthy cash flows and working capital management. It would be advisable for the company to continue monitoring and managing its receivables turnover to ensure optimal performance and financial stability.