Atmos Energy Corporation (ATO)

Financial leverage 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
Total assets	US$ in thousands	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	13,367,600	12,881,100	12,675,000
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
Financial leverage ratio		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	2.32	2.28	2.30

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $23,684,200K ÷ $11,273,200K
= 2.10

The financial leverage ratio of Atmos Energy Corp. has been fairly stable over the past eight quarters, ranging between 2.05 and 2.38. A higher financial leverage ratio indicates that a company is utilizing more debt to finance its operations compared to equity.

The increase in the financial leverage ratio in the first quarter of 2023 to 2.38 suggests that the company may have taken on more debt during that period. However, it is important to note that the ratio decreased in the following quarters, indicating a potential shift towards a more balanced capital structure.

Overall, the financial leverage ratio of Atmos Energy Corp. hovering around 2.10 indicates a moderate level of leverage, which should be manageable for the company. Investors and stakeholders should continue to monitor any significant changes in this ratio to assess the company's debt management and financial health effectively.