Atmos Energy Corporation (ATO)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	10,870,100	9,419,090	7,906,890	6,791,200	5,750,220
Debt-to-equity ratio		0.50	0.73	1.02	0.82	0.61

September 30, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $5,402,590K ÷ $10,870,100K
= 0.50

The debt-to-equity ratio of Atmos Energy Corp. has shown fluctuations over the past five years. The ratio decreased from 0.69 in 2019 to 0.67 in 2020 before experiencing a more significant decrease to 0.63 in 2023. This downward trend indicates a decrease in the company's reliance on debt relative to equity in its capital structure. A lower debt-to-equity ratio generally suggests that the company has less financial leverage and may be considered less risky by investors and creditors. It is essential to note that changes in the debt-to-equity ratio should be carefully evaluated in conjunction with other financial metrics to gain a comprehensive understanding of the company's overall financial health and risk profile.