Atmos Energy Corporation (ATO)

Debt-to-assets ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Long-term debt	US$ in thousands	7,337,940	5,402,590	6,918,840	8,086,140	5,597,180
Total assets	US$ in thousands	25,194,500	22,517,000	22,193,000	19,608,700	15,359,000
Debt-to-assets ratio		0.29	0.24	0.31	0.41	0.36

September 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $7,337,940K ÷ $25,194,500K
= 0.29

The debt-to-assets ratio of Atmos Energy Corporation has shown fluctuations over the past five years. The ratio stood at 0.36 in 2020, increased to 0.41 in 2021, then decreased to 0.31 in 2022, further decreased to 0.24 in 2023, and increased slightly to 0.29 in 2024.

A lower debt-to-assets ratio indicates that a company relies less on debt to finance its assets, which can be considered a positive sign of financial stability. However, a very low ratio may also imply underutilization of debt for potential growth opportunities. On the other hand, a higher ratio may suggest a higher level of financial risk due to increased debt obligations.

In the case of Atmos Energy Corporation, the decrease in the ratio from 2021 to 2023 could indicate a reduction in debt relative to its assets, potentially enhancing financial strength and stability. However, the slight increase in the ratio in 2024 suggests a slight uptick in the utilization of debt to finance assets. It would be important to monitor this trend closely to assess the company's ongoing debt management strategies and their impact on overall financial health.