Atmos Energy Corporation (ATO)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	307,340	674,620	262,497	278,315	15,404	56,237	95,175	171,597	51,554	328,075	582,495	264,005	116,723	524,621	865,311	457,599	20,808	208,064	320,099	189,272
Short-term investments	US$ in thousands	—	273,551	258,622	232,975	—	123,716	95,735	107,834	—	169,318	109,887	61,867	—	89,260	131,798	56,484	—	66	—	—
Total current liabilities	US$ in thousands	1,205,880	984,926	1,055,180	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
Cash ratio		0.25	0.96	0.49	0.44	0.01	0.17	0.17	0.08	0.01	0.15	0.22	0.10	0.03	0.58	1.14	0.64	0.03	0.30	0.34	0.22

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($307,340K + $—K) ÷ $1,205,880K
= 0.25

The cash ratio of Atmos Energy Corporation has fluctuated over the years, indicating varying levels of liquidity. The cash ratio represents the proportion of cash and cash equivalents to current liabilities, providing insight into the company's ability to cover its short-term obligations with its readily available cash.

Analyzing the trend, we can observe that the cash ratio has shown significant variability. In recent quarters, the cash ratio has ranged from as low as 0.01 to as high as 1.14, with some quarters indicating stronger liquidity positions than others.

The cash ratio was particularly low in the third quarter of 2023 at 0.01, suggesting a limited ability to cover short-term liabilities with available cash. However, the ratio improved steadily in subsequent quarters, reaching a peak of 1.14 in the first quarter of 2021, indicating a significant increase in liquidity.

It is essential to consider the industry benchmark and compare the company's cash ratio with its peers to assess its liquidity position effectively. A lower cash ratio may indicate potential liquidity issues, while a higher ratio suggests a stronger ability to meet short-term obligations.

Overall, the analysis of the cash ratio highlights the importance of monitoring liquidity levels to ensure the company can navigate short-term financial challenges effectively.