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Atmos Energy Financial Strength

: 4 (As of Jun. 2022)
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Atmos Energy has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Atmos Energy's Interest Coverage for the quarter that ended in Jun. 2022 was 5.90. Atmos Energy's debt to revenue ratio for the quarter that ended in Jun. 2022 was 2.44. As of today, Atmos Energy's Altman Z-Score is 1.33.


Competitive Comparison

For the Utilities - Regulated Gas subindustry, Atmos Energy's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

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

* The bar in red indicates where Atmos Energy's Financial Strength falls into.



Atmos Energy Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

Atmos Energy's Interest Expense for the months ended in Jun. 2022 was $-26 Mil. Its Operating Income for the months ended in Jun. 2022 was $155 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $5,759 Mil.

Atmos Energy's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*154.587/-26.19
=5.90

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Atmos Energy's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(2201.43 + 5759.164) / 3265.716
=2.44

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Atmos Energy has a Z-score of 1.33, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.33 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


Atmos Energy  (NYSE:ATO) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Atmos Energy has the Financial Strength Rank of 4.


Atmos Energy Financial Strength Related Terms

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


Atmos Energy Business Description

Atmos Energy logo
Traded in Other Exchanges
Address
5430 LBJ Freeway, Suite 1800, Three Lincoln Centre, Dallas, TX, USA, 75240
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 70% 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
Ale John C. director 5430 LBJ FREEWAY SUITE 1800 DALLAS TX 75240
Mcdill John S officer: SR VP, UTILITY OPERATIONS 5430 LBJ FREEWAY SUITE 1800 DALLAS TX 75240
Cocklin Kim R director C/O ATMOS ENERGY CORPORATION PO BOX 650205 DALLAS TX 75256
Yoho Frank H director 5430 LBJ FREEWAY SUITE 1800 DALLAS TX 75240
Walters Diana J director 5430 LBJ FREEWAY SUITE 1800 DALLAS TX 75240
Donohue Sean director P O BOX 650205 DALLAS TX 75265
Hartsfield Karen E officer: SR VP, GC & CORPORATE SEC'Y P O BOX 650205 DALLAS TX 75265-0205
Thomas Richard M officer: VICE PRESIDENT & CONTROLLER P O BOX 650205 DALLAS TX 75265-0205
Robbins J Matt officer: SR VP, Human Resources P O BOX 650205 DALLAS TX 75265-0205
Akers John K officer: SR VP, Safety & Enterprise Ser P O BOX 650205 DALLAS TX 75265-0205
Park David J officer: SR VP, Utility Operations P O BOX 650205 DALLAS TX 75265-0205
Compton Kelly H director P O BOX 650205 DALLAS TX 75265-0205
Garza Rafael G director P O BOX 650205 DALLAS TX 75265-0205
Eckert Bret J officer: SR VICE PRESIDENT P O BOX 650205 DALLAS TX 75265
Sampson Richard A director PO BOX 650205 DALLAS TX 75265

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