Atmos Energy Corporation (ATO)

Liquidity ratios

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
Current ratio 0.94 1.73 1.36 1.44 0.65 0.86 0.96 1.03 0.85 1.01 1.10 0.96 0.81 1.05 1.86 1.49 0.60 0.86 0.89 0.96
Quick ratio 0.57 1.36 1.06 0.99 0.26 0.49 0.64 0.31 0.12 0.27 0.39 0.25 0.13 0.85 1.68 1.26 0.32 0.63 0.75 0.74
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

The liquidity ratios of Atmos Energy Corporation have shown some fluctuations over the past few quarters. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has varied between 0.60 and 1.86. Generally, a current ratio above 1 indicates good short-term liquidity, but the company experienced a significant drop in the current ratio in Q3 2023 and Q1 2021, which may indicate potential liquidity challenges during those periods.

The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has ranged from 0.12 to 1.68. This ratio shows a similar pattern of fluctuation as the current ratio, suggesting some variability in the company's ability to meet its short-term obligations without relying on inventory.

The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents, has ranged from 0.01 to 1.14. This ratio signals the company's ability to cover its current liabilities with its most liquid assets, and it is important to note that the cash ratio has generally been low, indicating that Atmos Energy Corporation may have limited cash reserves relative to its short-term obligations.

Overall, while the company's liquidity ratios have shown some inconsistency, it is important for investors and stakeholders to closely monitor these ratios to assess the company's ability to meet its short-term financial obligations and manage liquidity risk effectively.

Additional liquidity measure

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 conversion cycle days 64.69 74.65 105.71 136.33 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

The cash conversion cycle of Atmos Energy Corporation has shown fluctuations over the past several quarters. The company's cash conversion cycle measures the time it takes for the company to convert its investments in raw materials and other inputs into cash flows from sales.

From December 2019 to September 2020, the cash conversion cycle ranged between 87.21 days and 106.55 days, indicating a relatively stable operational efficiency during this period. However, from December 2020 to March 2022, there was an increase in the cash conversion cycle, reaching a peak of 125.62 days in March 2022. This suggests a delay in the company's collection of accounts receivable or a slower turnover of inventory during this period.

The cash conversion cycle improved in the subsequent quarters, with a notable decrease to 64.69 days in September 2024. This improvement suggests that Atmos Energy Corporation has been managing its working capital more efficiently by reducing the time it takes to collect receivables and convert inventory into sales.

Overall, the company's cash conversion cycle trend indicates fluctuations but with recent signs of improvement. It is essential for Atmos Energy Corporation to continue monitoring and managing its cash conversion cycle effectively to ensure optimized liquidity and operational efficiency.