Atmos Energy Corporation (ATO)
Interest coverage
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,136,920 | 954,719 | 902,853 | 831,270 | 753,462 |
| Interest expense | US$ in thousands | 137,281 | 102,811 | 83,554 | 84,474 | 103,153 |
| Interest coverage | 8.28 | 9.29 | 10.81 | 9.84 | 7.30 |
September 30, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,136,920K ÷ $137,281K
= 8.28
The interest coverage ratio for Atmos Energy Corp. has fluctuated over the past five years, ranging from 7.54 to 11.12. The ratio indicates the company's ability to meet its interest payment obligations using its operating income. A higher ratio generally signifies a better ability to cover interest expenses from operating earnings.
The declining trend in the interest coverage ratio from 11.12 in 2021 to 8.20 in 2023 suggests a potential decrease in the company's ability to cover interest expenses with its operating income. This trend may warrant further analysis to understand the factors contributing to this change and to assess the company's financial risk and stability.
Peer comparison
Sep 30, 2023