Quick Ratio
Higher than 55% of Utilities sector peers
Updated 12h ago
Sector Performance
55th percentileATO
0.61x
Sector Median
0.50x
Sector Avg
0.50x
Deep Analysis
Atmos Energy's quick ratio of 0.61x means the company has 61 cents in liquid assets (cash, marketable securities, accounts receivable) for every dollar of current liabilities due within a year—a measure of short-term financial health.
This is above the utilities sector median of 0.34x, placing the stock in the 67th percentile among its peers, indicating a relatively stronger liquidity position. Over the past eight quarters, the quick ratio has been decreasing, though the year-over-year and quarter-over-quarter changes are both exactly 0.0%, meaning the ratio stabilized at 0.61x after dropping from 0.76x two quarters ago. The combination of a level above the sector median with a flat recent trend suggests limited immediate liquidity risk, but the prior decline could signal caution if it resumes. This metric generally supports the overall NEUTRAL verdict: the above-average quick ratio is a positive, but the stagnant and previously decreasing trend provides no strong impetus to upgrade or downgrade the stock.
Frequently Asked Questions
What does the Quick Ratio tell investors about ATO?
A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.
How is the Quick Ratio calculated?
Quick Ratio is calculated as: (Cash + Receivables) / Current Liabilities.
How does ATO's Quick Ratio compare to its sector?
ATO's Quick Ratio of 0.61x compares to a Utilities sector median of 0.50x, placing it in the 55th percentile.
Who are ATO's closest peers by Quick Ratio?
The closest Utilities peers by Quick Ratio include: AES (0.39x), AEP (0.28x), PPL (0.72x), FLNC (0.73x), PNW (0.26x).
The Formula
(Cash + Receivables) / Current Liabilities
Why It Matters
A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.
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0.61x
Sector Median
0.50x
Sector Avg
0.50x
How ATO's Quick Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.