ATONEUTRAL

ATO Debt-to-Equity Ratio Analysis

0.65x

Higher than 13% of Utilities sector peers

Updated 2745h ago·SEC filings & market data

Key Takeaway

Atmos Energy’s debt-to-equity ratio of 0.65x means the company uses $0.65 of debt for every $1 of shareholder equity, a measure of financial leverage.

Sector Performance

13th percentile

ATO

0.65x

Sector Median

1.52x

Sector Avg

1.87x

Prior Period

0.00x(May 2026)

↓ Declining

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Deep Analysis

Atmos Energy’s debt-to-equity ratio of 0.65x means the company uses $0.65 of debt for every $1 of shareholder equity, a measure of financial leverage.

This is well below the sector median of 1.47x, placing Atmos in the 9th percentile among utility peers — indicating it carries less debt than 91% of them. Trend data is not available: the year-over-year change is N/A, and the quarter-over-quarter change is N/A, so no directional insight can be drawn. The combination of a very low debt level with no trend information suggests a conservative capital structure that reduces financial risk, but the absence of historical context limits the ability to assess whether this positioning is stable or shifting. This metric supports the overall NEUTRAL verdict: the low leverage is a defensive positive, but without trend data to confirm improving or deteriorating conditions, it neither strengthens nor weakens a balanced outlook on the stock.

Frequently Asked Questions

What does the Debt-to-Equity Ratio tell investors about ATO?

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.

How is the Debt-to-Equity Ratio calculated?

Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.

How does ATO's Debt-to-Equity Ratio compare to its sector?

ATO's Debt-to-Equity Ratio of 0.65x compares to a Utilities sector median of 1.52x, placing it in the 13th percentile.

Who are ATO's closest peers by Debt-to-Equity Ratio?

The closest Utilities peers by Debt-to-Equity Ratio include: NEP (1.52x), PNW (1.56x), LNT (1.60x), PEG (1.42x), AEP (1.63x).

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Learn More About Debt-to-Equity Ratio

How to Spot a Debt Problem Before It Hits the Stock Price

Learn how to spot a debt problem in stocks using D/E, interest coverage, and net debt/EBITDA ratios. Real examples from META and MSFT, plus danger thresholds you need to know.

Debt/Equity Ratio: How Much Debt Is Too Much?

The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.

The Formula

Total Debt / Shareholders' Equity

Why It Matters

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.