Atmos Energy Corporation (ATO)

Debt-to-assets ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Long-term debt	US$ in thousands	5,402,590	6,918,840	8,086,140	5,597,180	3,529,450
Total assets	US$ in thousands	22,517,000	22,193,000	19,608,700	15,359,000	13,367,600
Debt-to-assets ratio		0.24	0.31	0.41	0.36	0.26

September 30, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $5,402,590K ÷ $22,517,000K
= 0.24

The debt-to-assets ratio measures the extent to which a company is financed by debt relative to its total assets. A lower ratio indicates a lower reliance on debt financing, which may be seen as less risky.

Analyzing Atmos Energy Corp.'s debt-to-assets ratio over the past five years shows a fluctuating trend. In 2023, the ratio decreased to 0.31 from 0.37 in 2022, signaling a reduction in the proportion of debt relative to total assets. This may indicate a decreased risk exposure associated with debt financing and a potential improvement in the company's financial stability.

However, it is important to note that in 2023, the ratio remains higher than in 2020 and 2019, when it was 0.30. This suggests that despite the recent decrease, the company's overall reliance on debt financing has increased relative to total assets in the past three years.

This fluctuation in the debt-to-assets ratio may indicate changes in the company's capital structure and financing strategies. Overall, while the recent decrease is a positive sign, further monitoring of the company's debt management and financial leverage is recommended.