Atmos Energy Corporation (ATO)

Quick ratio

		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	US$ in thousands	307,340	674,620	262,497	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
Short-term investments	US$ in thousands	—	273,551	258,622	232,975	—	123,716	95,735	107,834	—	169,318	109,887	61,867	—	89,260	131,798	56,484	—	66	—	—
Receivables	US$ in thousands	380,214	391,551	596,433	646,401	342,572	330,827	523,741	826,416	375,619	375,257	565,184	514,333	342,967	291,122	469,595	492,526	230,595	236,466	377,817	435,616
Total current liabilities	US$ in thousands	1,205,880	984,926	1,055,180	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
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

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 few years, indicating varying levels of liquidity. The ratio is calculated by dividing quick assets by current liabilities.

As of September 30, 2024, the quick ratio stands at 0.57, suggesting that the company may have difficulty meeting its short-term obligations with its most liquid assets alone. This is lower compared to the quick ratio in the prior quarter, where it was at a healthier level of 1.36.

Looking back further, the quick ratio has exhibited volatility, with significant variations over time. For instance, in March 2021, the quick ratio was 1.68, indicating strong liquidity at that point in time. However, this ratio dropped to 0.12 in September 2022, reflecting potential liquidity challenges for the company during that period.

Overall, the trend in the quick ratio for Atmos Energy Corporation shows periods of both strength and potential weakness in liquidity management. It is important to consider the company's operational and financial strategies in conjunction with the quick ratio to gain a more comprehensive understanding of its overall financial health.