Atmos Energy Corporation (ATO)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	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	2,901,843	2,902,860	2,979,367
Total current assets	US$ in thousands	1,679,720	885,768	888,926	1,073,110	3,627,760	3,047,690	3,281,850	3,529,000	3,274,200	2,838,720	1,115,370	1,620,430	1,192,290	471,258	602,159	829,561	812,129	458,031	503,534	671,181
Total current liabilities	US$ in thousands	1,170,480	1,352,590	1,034,320	1,113,000	3,531,890	3,602,600	3,259,120	3,208,420	3,426,490	3,510,360	1,062,520	871,299	797,839	782,401	702,686	933,390	845,172	1,209,440	901,374	864,139
Working capital turnover		7.76	—	—	—	48.74	—	178.07	11.97	—	—	62.71	4.27	7.25	—	—	—	—	—	—	—

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,949,815K ÷ ($1,679,720K – $1,170,480K)
= 7.76

The working capital turnover ratio for Atmos Energy Corp. has fluctuated significantly over the past few quarters, indicating potential variability in the company's management of working capital.

In Q2 2022, the working capital turnover ratio was exceptionally high at 178.07, suggesting that the company efficiently managed its working capital to generate sales during that period. However, this high ratio may also indicate that the company had a lower level of working capital relative to its sales during the time frame.

In Q1 2023, the ratio dropped to 48.74, which is still relatively high but significantly lower compared to Q2 2022. This may suggest that the efficiency of the company in utilizing its working capital to generate sales declined during this period.

In Q1 2024, the working capital turnover ratio decreased further to 7.76, indicating a substantial decrease in the company's working capital efficiency compared to the previous quarters. This sharp decline may raise concerns about how effectively the company is managing its working capital to support its sales operations.

The lack of data for Q3 and Q4 2023 restricts a comprehensive trend analysis, but the significant fluctuations in the working capital turnover ratio seen in the available data indicate that Atmos Energy Corp. should focus on maintaining a more stable and efficient management of its working capital in order to support its sales and overall financial performance.