Atmos Energy Corporation (ATO)

Quick ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cash	US$ in thousands	307,340	15,404	51,554	116,723	20,808
Short-term investments	US$ in thousands	—	-381,593	—	—	—
Receivables	US$ in thousands	380,214	342,572	375,619	342,967	230,595
Total current liabilities	US$ in thousands	1,205,880	1,352,590	3,602,600	3,510,360	782,401
Quick ratio		0.57	-0.02	0.12	0.13	0.32

September 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($307,340K + $—K + $380,214K) ÷ $1,205,880K
= 0.57

The quick ratio of Atmos Energy Corporation has fluctuated over the past five years. In 2024, the quick ratio stood at 0.57, indicating that the company had $0.57 of liquid assets available to cover each $1 of current liabilities. This represents an improvement compared to the negative quick ratio of -0.02 in 2023, which suggests the company had insufficient liquid assets to cover its short-term obligations at that time.

While the quick ratio increased from 0.12 in 2022 to 0.13 in 2021, it remained relatively low. This could indicate that Atmos Energy Corporation may have faced challenges in meeting its short-term obligations with its readily available liquid assets during those years.

In 2020, the quick ratio improved to 0.32, showing a slight increase from the previous year. However, it still indicates that the company may have had difficulty covering its current liabilities solely with its quick assets.

Overall, the trend in the quick ratio suggests that Atmos Energy Corporation's liquidity position has varied over the years, with fluctuations that may warrant further investigation into the company's ability to meet its short-term financial obligations.