Atmos Energy Corporation (ATO)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 66.03% | 59.95% | 69.69% | 76.65% | 70.40% |
| Operating profit margin | 24.96% | 21.92% | 26.56% | 29.21% | 25.71% |
| Pretax margin | 23.38% | 20.28% | 24.04% | 26.47% | 22.41% |
| Net profit margin | 20.72% | 18.43% | 19.53% | 21.32% | 17.62% |
Based on the profitability ratios of Atmos Energy Corp., we can observe the following trends over the past five years:
1. Gross Profit Margin:
The gross profit margin has displayed some volatility over the years, with a significant decrease in 2022 followed by a substantial increase in 2023. The margin stood at 66.03% in 2023, showing an improvement compared to the prior year. This indicates that the company has been able to control its cost of goods sold relative to its revenue, positively impacting its overall profitability.
2. Operating Profit Margin:
The operating profit margin also experienced fluctuations over the years. There was an increase from 2021 to 2023, reaching 24.96% in 2023. This indicates that the company has been successful in managing its operating expenses relative to its revenue. It's an indicator of the company's efficiency in managing its day-to-day operations.
3. Pretax Margin:
The pretax margin measures the company's ability to generate profits before accounting for taxes. It has shown an increasing trend from 2021 to 2023, reaching 23.38% in 2023. This suggests that the company has been able to effectively manage its non-operating expenses, such as interest and other costs, contributing to its overall profitability.
4. Net Profit Margin:
The net profit margin, representing the company's bottom-line profitability after all expenses, has also demonstrated an upward trend over the past five years, with a notable increase to 20.71% in 2023. This indicates that the company has been successful in controlling its overall expenses, including taxes and other non-operating items.
In conclusion, the overall profitability ratios of Atmos Energy Corp. have shown resilience, with improvements in gross profit margin, operating profit margin, pretax margin, and net profit margin. These trends indicate that the company has been effectively managing its costs and expenses, which has positively impacted its profitability over the years. However, it's essential to continue monitoring these ratios to ensure sustained profitability and efficiency in the company's operations.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.74% | 4.15% | 4.62% | 5.37% | 5.58% |
| Return on assets (ROA) | 3.93% | 3.49% | 3.39% | 3.92% | 3.83% |
| Return on total capital | 6.99% | 5.84% | 5.65% | 6.71% | 8.12% |
| Return on equity (ROE) | 8.15% | 8.22% | 8.42% | 8.86% | 8.89% |
Atmos Energy Corp's profitability ratios, as of September 30 for the years 2019 through 2023, show the company's ability to generate profits in relation to its assets, capital, and equity.
1. Operating return on assets (Operating ROA): This ratio indicates the company's ability to generate operating income from its assets. The trend of this ratio over the five-year period shows a slight decrease, from 5.58% in 2019 to 4.74% in 2023. This may signal lower operating efficiency in generating income from its assets.
2. Return on assets (ROA): This ratio measures the company's ability to generate profits from its total assets. The trend shows fluctuation, with a peak of 3.91% in 2020, followed by a decline to 3.39% in 2021, before a gradual increase to 3.93% in 2023.
3. Return on total capital: This ratio assesses the company's ability to generate returns for both debt and equity holders. The trend follows a similar pattern to the ROA, with a peak of 7.66% in 2019, a dip to 5.24% in 2022, and a moderate increase to 6.01% in 2023.
4. Return on equity (ROE): This ratio measures the returns the company generates on the shareholders' equity. The trend for this ratio over the five-year period shows a relatively stable range, with a slight decrease from 8.89% in 2019 to 8.14% in 2023.
Overall, the profitability ratios indicate that Atmos Energy Corp has experienced fluctuations in its ability to generate profits in relation to its assets, capital, and equity over the past five years. It is important for investors and stakeholders to closely monitor the company's performance and assess the factors contributing to these fluctuations.