Atmos Energy Corporation (ATO)

Debt-to-assets 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
Long-term debt	US$ in thousands	6,963,110	5,402,590	5,760,040	5,879,820	7,856,150	6,918,840	7,340,180	7,949,540	8,653,660	8,086,140	8,101,740	7,828,420	6,294,670	5,597,180	5,563,300	4,863,850	4,927,760	3,529,450	3,529,140	3,528,710
Total assets	US$ in thousands	23,684,200	22,517,000	21,771,500	21,311,900	23,366,200	22,193,000	21,655,500	21,271,100	20,545,800	19,608,700	19,315,400	19,408,800	16,475,900	15,359,000	14,871,000	14,716,400	14,388,100	13,367,600	12,881,100	12,675,000
Debt-to-assets ratio		0.29	0.24	0.26	0.28	0.34	0.31	0.34	0.37	0.42	0.41	0.42	0.40	0.38	0.36	0.37	0.33	0.34	0.26	0.27	0.28

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $6,963,110K ÷ $23,684,200K
= 0.29

The debt-to-assets ratio of Atmos Energy Corp. has been relatively stable over the past eight quarters, ranging from 0.31 to 0.37. This ratio indicates that, on average, around 31% to 37% of the company's assets are financed by debt.

A lower debt-to-assets ratio is generally more favorable as it suggests lower financial risk and greater financial stability. Atmos Energy Corp.'s consistent ratio within this range may indicate a prudent approach to managing its debt levels in relation to its assets.

It is worth noting that a downward trend in the ratio can signal improving financial health, while an upward trend may indicate a higher reliance on debt to finance assets. Monitoring this ratio over time can provide insights into the company's financial health and its ability to meet its financial obligations.