Atmos Energy Corporation (ATO)

Quick ratio

		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	US$ in thousands	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	24,550	46,163	108,353
Short-term investments	US$ in thousands	232,975	—	123,716	95,735	107,834	—	169,318	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	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	230,571	285,433	419,612
Total current liabilities	US$ in thousands	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	1,209,440	901,374	864,139
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

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($278,315K + $232,975K + $646,401K) ÷ $1,170,480K
= 0.99

The quick ratio of Atmos Energy Corp. has shown some fluctuation over the past eight quarters. In Q1 2024, the quick ratio improved significantly to 1.24 from the previous quarter's 0.44, indicating a stronger liquidity position. This increase suggests that the company's ability to meet its short-term obligations with its most liquid assets has improved considerably.

However, in Q4 2023, the quick ratio dropped substantially to 0.44, which may have raised concerns about the company's short-term liquidity position. This decline could imply that Atmos Energy Corp. had fewer liquid assets relative to its current liabilities in that period.

The quick ratio continued to vary in the preceding quarters, with fluctuations observed in Q3 2023 (0.65) and Q2 2023 (0.80). These fluctuations suggest that the company's liquidity position was inconsistent during these periods.

Moreover, the quick ratio was relatively stable in Q1 2023 (0.94) and Q4 2022 (0.74), indicating a moderate level of liquidity to cover short-term obligations. The quick ratio further improved in Q3 2022 (0.94) and Q2 2022 (1.07), reflecting a stronger liquidity position compared to the prior periods.

Overall, the analysis of Atmos Energy Corp.'s quick ratio reveals fluctuations in liquidity over the past eight quarters. While the recent increase in Q1 2024 shows improved liquidity, the company's liquidity position has been somewhat volatile, with periods of both strength and weakness in meeting short-term obligations.