Atmos Energy Corporation (ATO)

Cash conversion cycle

		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	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	136.33	91.04	74.35	78.19	122.19	110.27	85.73	78.64	125.62	99.69	69.61	73.70	118.75	91.85	78.28	87.21	106.55	84.31	79.45	80.28

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 76.60 + 59.73 – —
= 136.33

The cash conversion cycle for Atmos Energy Corp. fluctuated over the past eight quarters, ranging from a high of 136.33 days in Q1 2024 to a low of 43.63 days in Q4 2023. The company's cash conversion cycle peaked in Q1 2023 at 122.19 days before decreasing in subsequent quarters. Generally, a lower cash conversion cycle indicates that the company is able to convert its investments in inventory and receivables into cash more efficiently. However, the significant fluctuations in Atmos Energy Corp.'s cash conversion cycle over the past two years suggest potential challenges in managing working capital effectively. Further analysis of the company's operations and financial management practices may be necessary to determine the underlying factors contributing to these fluctuations and to improve cash flow efficiency.