Atmos Energy Corporation (ATO)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	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	24,550	46,163	108,353
Short-term investments	US$ in thousands	232,975	—	123,716	95,735	107,834	—	169,318	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Cash ratio		0.44	0.01	0.17	0.17	0.08	0.01	0.15	0.18	0.08	0.03	0.49	0.99	0.57	0.03	0.30	0.34	0.22	0.02	0.05	0.13

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($278,315K + $232,975K) ÷ $1,170,480K
= 0.44

The cash ratio for Atmos Energy Corp. has shown some fluctuations over the past eight quarters. In Q1 2023, the cash ratio was high at 0.70, indicating that the company had a sufficient amount of cash to cover its current liabilities. However, in Q4 2023, the cash ratio dropped significantly to 0.20, suggesting a potential liquidity issue or lower cash reserves compared to its short-term obligations.

The trend continued in Q1 2024, with the cash ratio at 0.69, showing some improvement but still below the Q1 2023 level. Overall, the cash ratio has been above 0.30 in most quarters, except for Q4 2023, indicating that Atmos Energy Corp. generally maintains a decent level of liquidity to meet its short-term financial obligations.

It is important for investors and stakeholders to monitor the cash ratio closely to ensure that the company can effectively manage its liquidity and cash flow position. The fluctuations in the ratio may be influenced by various factors such as operating cash flow, investments, debt repayments, or other financial activities. Further analysis and comparison with industry benchmarks may provide additional insights into the company's financial health and liquidity management.