Atmos Energy Corporation (ATO)

Solvency ratios

	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
Debt-to-assets ratio	0.29	0.28	0.28	0.29	0.24	0.26	0.28	0.34	0.31	0.34	0.37	0.42	0.41	0.42	0.40	0.38	0.36	0.37	0.33	0.34
Debt-to-capital ratio	0.38	0.36	0.37	0.38	0.33	0.35	0.37	0.44	0.42	0.44	0.47	0.51	0.51	0.51	0.50	0.47	0.45	0.46	0.44	0.45
Debt-to-equity ratio	0.60	0.57	0.58	0.62	0.50	0.54	0.58	0.80	0.73	0.79	0.88	1.04	1.02	1.04	1.00	0.87	0.82	0.86	0.77	0.80
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

Atmos Energy Corporation's solvency ratios have shown some fluctuations over the past five years. The debt-to-assets ratio has generally remained below 0.30, indicating that the company relies moderately on debt financing to fund its assets. However, there was an increase in this ratio in the most recent quarter, possibly signaling a slight shift towards higher debt levels relative to total assets.

The debt-to-capital and debt-to-equity ratios have followed a similar trend, with the debt-to-equity ratio consistently higher than the debt-to-assets and debt-to-capital ratios. This suggests that the company's capital structure is more skewed towards debt, which could pose higher financial risk compared to a more balanced mix of debt and equity financing. The ratios show that the company has been increasing its leverage over time, as indicated by the rising financial leverage ratio.

Overall, while the debt levels of Atmos Energy Corporation have been relatively stable over the past few years, the increasing leverage ratios may warrant closer monitoring to ensure the company's long-term financial stability and ability to meet its debt obligations.

Coverage ratios

	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
Interest coverage	7.29	7.62	7.86	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

Atmos Energy Corporation's interest coverage ratio has shown a consistent upward trend over the past eight quarters, indicating the company's strong ability to cover its interest expenses with operating profits. The interest coverage ratio stood at 7.29 in September 2020 and gradually increased to 11.08 by March 2021, before slightly declining to 7.86 in March 2024. Despite some fluctuations, the company's interest coverage ratio has generally remained above 7.00, reflecting a healthy financial position.

The consistently high interest coverage ratios above 7.00 indicate that Atmos Energy Corporation has sufficient earnings to comfortably meet its interest obligations, reassuring creditors and investors about the company's financial stability. The company's ability to generate significant operating profits relative to its interest expenses suggests a low risk of default on its debt obligations. Overall, the trend in Atmos Energy's interest coverage ratio reflects a financially sound and stable position, providing a positive outlook for the company's financial health.