Atmos Energy Corporation (ATO)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 54.35% | 66.03% | 59.95% | 69.69% | 76.65% |
| Operating profit margin | 32.54% | 24.96% | 21.92% | 26.56% | 29.21% |
| Pretax margin | 29.67% | 23.38% | 20.28% | 24.04% | 26.47% |
| Net profit margin | 25.04% | 20.72% | 18.43% | 19.53% | 21.32% |
Atmos Energy Corporation's profitability ratios have shown some fluctuations over the past five years based on the data provided.
The gross profit margin has experienced some volatility, with a significant drop in 2024 compared to the previous years. This indicates that the company's cost of goods sold as a percentage of revenue has increased. It might be worth investigating the reasons behind this trend to ensure the company maintains a healthy margin.
The operating profit margin has also displayed variability, with a notable increase in 2024 compared to 2023 and 2022. This suggests that the company has been able to control its operating expenses more effectively and improve operational efficiency.
The pretax margin has shown a similar pattern, with fluctuations over the years. There was a notable increase in 2024 compared to the previous years, indicating that the company's pre-tax profitability has improved. This could be attributed to better cost management or increased revenue generation.
The net profit margin, which represents the company's bottom line profitability, has also fluctuated over the period. Although there was a decrease in 2024 compared to 2023, the net profit margin has generally been within a reasonable range. The company may need to focus on maintaining or improving its net profit margin to ensure sustainable profitability.
Overall, while Atmos Energy Corporation has shown some inconsistency in its profitability ratios over the past five years, there are indications of both strengths and areas for improvement. Further analysis and monitoring of these ratios can help the company make informed decisions to enhance its profitability in the future.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.38% | 4.74% | 4.15% | 4.62% | 5.37% |
| Return on assets (ROA) | 4.14% | 3.93% | 3.49% | 3.39% | 3.92% |
| Return on total capital | 6.95% | 6.99% | 5.84% | 5.65% | 6.71% |
| Return on equity (ROE) | 8.58% | 8.15% | 8.22% | 8.42% | 8.86% |
Atmos Energy Corporation's profitability ratios have shown varying levels over the past five years. The Operating return on assets (Operating ROA) has generally increased from 4.15% in 2022 to 5.38% in 2024, indicating improved operational efficiency in generating profits from its assets. The Return on assets (ROA) also shows an increasing trend, reaching 4.14% in 2024, suggesting that the company is effectively utilizing its assets to generate profits.
The Return on total capital has shown fluctuation over the years, with a peak of 6.99% in 2023 and a current value of 6.95% in 2024. This ratio indicates the overall efficiency of the company in generating returns from both its debt and equity capital.
The Return on equity (ROE) has remained relatively stable between 8.15% and 8.86% over the past five years, reflecting the company's ability to generate profits for its shareholders.
Overall, Atmos Energy Corporation's profitability ratios demonstrate a generally positive trend with some fluctuations, indicating a reasonable level of profitability and efficiency in utilizing its assets and capital to generate returns for its stakeholders.