Atmos Energy Corporation (ATO)

Financial leverage ratio

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	25,194,500	24,891,300	24,004,600	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
Total stockholders’ equity	US$ in thousands	12,157,700	12,183,100	11,618,600	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
Financial leverage ratio		2.07	2.04	2.07	2.10	2.07	2.05	2.09	2.38	2.36	2.34	2.37	2.48	2.48	2.48	2.48	2.28	2.26	2.30	2.33	2.35

September 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $25,194,500K ÷ $12,157,700K
= 2.07

The financial leverage ratio of Atmos Energy Corporation has shown some fluctuations over the past few years, ranging from 2.04 to 2.48. The ratio indicates that the company relies on debt financing to support its operations and investments, with an average leverage of around 2.25.

The trend in the financial leverage ratio shows a slight increase from 2019 to 2020 before stabilizing at around 2.30 to 2.35 in recent quarters. The spike in the ratio in Q4 2022 to Q1 2023, where it reached its peak at 2.48, might indicate a significant increase in debt relative to equity during that period.

Overall, the financial leverage ratio suggests that Atmos Energy Corporation has a moderate level of leverage in its capital structure. It is essential for the company to manage its debt levels effectively to ensure financial stability and minimize risks associated with high leverage.