Atmos Energy Corporation (ATO)

Liquidity ratios

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
Current ratio 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 0.38 0.56 0.78
Quick ratio 0.99 0.26 0.49 0.64 0.31 0.12 0.27 0.36 0.23 0.13 0.77 1.53 1.19 0.32 0.63 0.75 0.74 0.21 0.37 0.61
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

The liquidity ratios of Atmos Energy Corp. indicate its ability to meet short-term obligations and manage cash flow effectively.

The current ratio has shown significant fluctuations over the quarters, ranging from 0.65 in Q4 2023 to 1.44 in Q1 2024. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered favorable. However, the sharp fluctuations suggest potential issues with working capital management.

The quick ratio, which excludes inventory from current assets, provides a more conservative measure of liquidity. Similar to the current ratio, the quick ratio has varied considerably, with the lowest value of 0.44 in Q4 2023 and the highest of 1.24 in Q1 2024. A quick ratio above 1 is typically preferred, suggesting the company can meet its short-term obligations without relying on inventory liquidation.

The cash ratio, which is the most stringent measure of liquidity, has also fluctuated notably, ranging from 0.20 in Q4 2023 to 0.70 in Q1 2023. A cash ratio below 1 indicates that the company may not have enough cash to cover its current liabilities, which could signal potential cash flow challenges.

Overall, the liquidity ratios of Atmos Energy Corp. reflect volatility and fluctuations in its ability to cover short-term obligations. The company may need to focus on improving working capital management and maintaining adequate cash reserves to ensure financial stability and meet its obligations in a timely manner.

Additional liquidity measure

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 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

The cash conversion cycle for Atmos Energy Corp. has exhibited variability over the past eight quarters, with values ranging from a low of 43.63 days in Q4 2023 to a high of 136.33 days in Q1 2024. The trend indicates that the company's efficiency in converting its investments in inventory and accounts receivable into cash has fluctuated significantly.

The longer cash conversion cycle periods, such as in Q1 2024 and Q1 2023, suggest that Atmos Energy Corp. takes a longer time to convert its resources into cash, potentially impacting its liquidity and working capital management. Conversely, the shorter cycles observed in Q4 2023 and Q4 2022 may indicate improved efficiency in managing its operating cycle.

Overall, a downward trend in the cash conversion cycle would indicate that the company is managing its working capital effectively, while an upward trend may raise concerns about liquidity and operational efficiency. It would be important for Atmos Energy Corp. to further analyze the factors contributing to fluctuations in its cash conversion cycle to optimize its cash flow management strategies.