Atmos Energy Corporation (ATO)

Cash ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cash and cash equivalents	US$ in thousands	15,404	51,554	116,723	20,808	24,550
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	1,352,590	3,602,600	3,510,360	782,401	1,209,440
Cash ratio		0.01	0.01	0.03	0.03	0.02

September 30, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($15,404K + $—K) ÷ $1,352,590K
= 0.01

The cash ratio of Atmos Energy Corp. has fluctuated over the past five years. It decreased from 0.66 in 2021 to 0.16 in 2020, but rebounded slightly to 0.20 in 2023. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher ratio indicates a stronger ability to meet short-term obligations. The decrease in the cash ratio from 2021 to 2020 may indicate a decrease in the company's ability to cover short-term liabilities with cash, but the slight increase in 2023 shows a partial recovery. It would be important to further analyze the company's cash management and liquidity position to understand the factors contributing to these fluctuations.