Atmos Energy Corporation (ATO)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,211,536	1,136,922	1,079,805	1,062,232	1,012,533	954,719	916,784	888,211	882,504	902,853	927,710	934,703	878,514	831,270	831,352	808,929	782,389	753,462	743,036	740,179
Interest expense (ttm)	US$ in thousands	152,396	137,281	133,306	128,162	119,720	102,811	89,455	84,227	81,395	83,554	84,562	83,180	79,255	84,474	97,743	97,755	102,533	103,153	98,874	102,631
Interest coverage		7.95	8.28	8.10	8.29	8.46	9.29	10.25	10.55	10.84	10.81	10.97	11.24	11.08	9.84	8.51	8.28	7.63	7.30	7.51	7.21

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,211,536K ÷ $152,396K
= 7.95

The interest coverage ratio for Atmos Energy Corp. has been relatively stable over the past eight quarters, ranging from 7.80 to 10.79. This indicates that the company has consistently generated sufficient operating income to cover its interest expenses. A ratio above 1.0 generally suggests that the company is able to meet its interest obligations comfortably. The gradual decrease in the interest coverage ratio over the quarters may be a result of changing operating income or increasing interest expenses. Overall, Atmos Energy Corp. appears to have a strong ability to service its debt obligations with its operating income.