Atmos Energy Corporation (ATO)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	12,157,700	10,870,100	9,419,090	7,906,890	6,791,200
Debt-to-equity ratio		0.60	0.50	0.73	1.02	0.82

September 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $7,337,940K ÷ $12,157,700K
= 0.60

The debt-to-equity ratio of Atmos Energy Corporation has shown fluctuations over the past five years. As of September 30, 2024, the company's debt-to-equity ratio stands at 0.60, indicating that for every dollar of equity, the company has 60 cents of debt. This ratio has increased from the previous year, where it was 0.50, suggesting that the company has taken on more debt relative to its equity.

Comparing the current ratio to historical data, we observe a downward trend from 2021 to 2023, reaching a low of 0.50 in 2023, possibly indicating improved financial stability during these years. However, there was a notable increase in the ratio in 2024 to 0.60, signaling that the company may be increasing its debt levels.

A debt-to-equity ratio above 1 signifies that the company has more debt than equity, which was the case for Atmos Energy in 2021, with a ratio of 1.02. This level of leverage can indicate higher financial risk, as the company relies more on debt financing.

Overall, while the debt-to-equity ratio of Atmos Energy Corporation has varied over the years, careful monitoring of this ratio is essential to assess the company's leverage and financial health.