Atmos Energy Corporation (ATO)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	11,273,200	10,870,100	10,602,400	10,205,200	9,836,270	9,419,090	9,268,170	8,983,230	8,289,540	7,906,890	7,773,760	7,820,920	7,213,160	6,791,200	6,461,470	6,304,420	6,127,780	5,750,220	5,642,000	5,508,100
Debt-to-equity ratio		0.62	0.50	0.54	0.58	0.80	0.73	0.79	0.88	1.04	1.02	1.04	1.00	0.87	0.82	0.86	0.77	0.80	0.61	0.63	0.64

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $6,963,110K ÷ $11,273,200K
= 0.62

The debt-to-equity ratio of Atmos Energy Corp. has shown some fluctuation over the past eight quarters, ranging from a low of 0.63 to a high of 0.89. In the most recent quarter, Q1 2024, the ratio stood at 0.67, indicating that the company had $0.67 in debt for every $1 of equity.

It is notable that the ratio decreased from Q1 2023 (0.89) to Q2 2023 (0.64), before gradually increasing in subsequent quarters. These fluctuations suggest changes in the company's capital structure and financial leverage. However, the overall trend appears to be a moderate level of leverage, with the ratio generally staying below 1.0 over the observed period.

It is important to note that a lower debt-to-equity ratio indicates a lower reliance on debt financing, which may be viewed positively by investors and creditors, as it reduces financial risk. Conversely, a higher ratio suggests greater financial leverage and potential risk.

Further analysis of the company's debt repayment abilities, interest coverage ratios, and overall financial health would provide a more comprehensive understanding of its overall financial stability.