Atmos Energy Corporation (ATO)

Financial leverage ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Total assets	US$ in thousands	22,517,000	22,193,000	19,608,700	15,359,000	13,367,600
Total stockholders’ equity	US$ in thousands	10,870,100	9,419,090	7,906,890	6,791,200	5,750,220
Financial leverage ratio		2.07	2.36	2.48	2.26	2.32

September 30, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $22,517,000K ÷ $10,870,100K
= 2.07

The financial leverage ratio of Atmos Energy Corp. has shown a decreasing trend over the past five years, declining from 2.32 in 2019 to 2.07 in 2023. This implies that the company's reliance on debt to finance its operations has decreased over the period. A lower financial leverage ratio indicates a reduced level of financial risk and a stronger financial position, as it suggests a greater proportion of equity relative to debt in the company's capital structure. This may be seen as a positive sign by investors and creditors, as it indicates improved solvency and stability for the company. However, it's important to consider the reasons behind this trend and its potential impact on the company's future growth and profitability.