Atmos Energy (Atmos Energy) Interest Coverage

: 7.69 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Atmos Energy's Operating Income for the three months ended in Dec. 2023 was $399 Mil. Atmos Energy's Interest Expense for the three months ended in Dec. 2023 was $-52 Mil. Atmos Energy's interest coverage for the quarter that ended in Dec. 2023 was 7.69. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Atmos Energy's Interest Coverage or its related term are showing as below:

ATO' s Interest Coverage Range Over the Past 10 Years
Min: 4.73 Med: 7.03 Max: 10.83
Current: 7.51

ATO's Interest Coverage is ranked better than
69.91% of 442 companies
in the Utilities - Regulated industry
Industry Median: 3.715 vs ATO: 7.51

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Atmos Energy Interest Coverage Historical Data

The historical data trend for Atmos Energy's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Atmos Energy Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Interest Coverage

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7.23

9.76

10.83

8.96

7.77

Atmos Energy Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															8.74	11.31	5.40	4.84	7.69

Competitive Comparison

For the Utilities - Regulated Gas subindustry, Atmos Energy's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Atmos Energy Interest Coverage Distribution

For the Utilities - Regulated industry and Utilities sector, Atmos Energy's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Atmos Energy's Interest Coverage falls into.

Atmos Energy Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Atmos Energy's Interest Coverage for the fiscal year that ended in Sep. 2023 is calculated as

Here, for the fiscal year that ended in Sep. 2023, Atmos Energy's Interest Expense was $-137 Mil. Its Operating Income was $1,067 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,749 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2023 )	/	Interest Expense (A: Sep. 2023 )
	=	-1	*	1067.147	/	-137.281
	=	7.77

Atmos Energy's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Atmos Energy's Interest Expense was $-52 Mil. Its Operating Income was $399 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,529 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	399.105	/	-51.875
	=	7.69

The higher the ratio, the stronger the company's Financial Strength is.

Atmos Energy (NYSE:ATO) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Atmos Energy Interest Coverage Related Terms

Thank you for viewing the detailed overview of Atmos Energy's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Atmos Energy (Atmos Energy) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Atmos Energy Corp (NYSE:ATO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

AEO:Germany A1TM34:Brazil

Address

5430 LBJ Freeway, Suite 1800, Three Lincoln Centre, Dallas, TX, USA, 75240

Website

https://www.atmosenergy.com

Atmos Energy is the largest publicly traded, fully regulated, pure-play natural gas utility in the United States, serving more than 3 million customers in Texas, Colorado, Kansas, Kentucky, Louisiana, Mississippi, Tennessee, and Virginia. About two thirds of its earnings come from Texas, where it distributes natural gas in northern Texas and owns an intrastate gas pipeline spanning several key shale gas formations and interconnected with five storage facilities.

Executives

Richard M Thomas	officer: VICE PRESIDENT & CONTROLLER	P O BOX 650205, DALLAS TX 75265-0205
Kim R Cocklin	director	C/O ATMOS ENERGY CORPORATION, PO BOX 650205, DALLAS TX 75256
Diana J Walters	director	5430 LBJ FREEWAY, SUITE 1800, DALLAS TX 75240
John S Mcdill	officer: SR VP, UTILITY OPERATIONS	5430 LBJ FREEWAY, SUITE 1800, DALLAS TX 75240
John C. Ale	director	5430 LBJ FREEWAY, SUITE 1800, DALLAS TX 75240
Christopher T Forsythe	officer: Vice President and Controller	P O BOX 650205, DALLAS TX 75265
Sean Donohue	director	P O BOX 650205, DALLAS TX 75265
J Matt Robbins	officer: SR VP, Human Resources	P O BOX 650205, DALLAS TX 75265-0205
Frank H Yoho	director	5430 LBJ FREEWAY, SUITE 1800, DALLAS TX 75240
Richard A Sampson	director	PO BOX 650205, DALLAS TX 75265
David J Park	officer: SR VP, Utility Operations	P O BOX 650205, DALLAS TX 75265-0205
Richard W Douglas	director	10670 N CENTRAL EXPRESSWAY, DALLAS TX 75231
Nancy K Quinn	director	P O BOX 650205, DALLAS TX 75265
Karen E Hartsfield	officer: SR VP, GC & CORPORATE SEC'Y	P O BOX 650205, DALLAS TX 75265-0205
John K Akers	officer: SR VP, Safety & Enterprise Ser	P O BOX 650205, DALLAS TX 75265-0205