Atmos Energy Corporation (ATO)

Quick ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cash	US$ in thousands	15,404	51,554	116,723	20,808	24,550
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	342,572	375,619	342,967	230,595	230,571
Total current liabilities	US$ in thousands	1,352,590	3,602,600	3,510,360	782,401	1,209,440
Quick ratio		0.26	0.12	0.13	0.32	0.21

September 30, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($15,404K + $—K + $342,572K) ÷ $1,352,590K
= 0.26

The quick ratio, also known as the acid-test ratio, is a measure of a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio of 1 indicates that a company could pay off all of its current liabilities immediately using its liquid assets.

Based on the data provided, the quick ratio for Atmos Energy Corp. has fluctuated over the past five years. In 2023, the quick ratio decreased to 0.44 from 0.74 in 2022, indicating a lower level of liquidity and a potential challenge in meeting short-term obligations. This decline may raise concerns about the company's ability to cover its current liabilities without having to sell inventory or obtain additional financing.

The quick ratio was relatively stable at around 0.75 in 2021 and 2020, suggesting a reasonable level of liquidity to meet short-term obligations. However, in 2019, the quick ratio was significantly lower at 0.27, indicating a potential liquidity strain.

This trend in the quick ratio over the years may prompt further investigation into the company's cash management, working capital management, and potential fluctuations in its current assets and liabilities. It is important for stakeholders to closely monitor changes in the quick ratio to assess Atmos Energy Corp.'s short-term liquidity and financial health.