NiSource Inc (NI)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	2,245,400	40,800	84,200	116,500	139,300
Short-term investments	US$ in thousands	—	151,600	171,800	—	—
Total current liabilities	US$ in thousands	5,265,100	4,660,500	2,746,200	2,279,400	3,745,800
Cash ratio		0.43	0.04	0.09	0.05	0.04

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,245,400K + $—K) ÷ $5,265,100K
= 0.43

The cash ratio of NiSource Inc has shown variability over the past five years. The ratio has fluctuated between 0.13 and 0.58 during this period. In 2023, the cash ratio stands at 0.58, indicating that NiSource Inc has improved its ability to cover its short-term liabilities with cash and cash equivalents. This implies that the company has a higher level of liquid assets relative to its current liabilities, suggesting a stronger liquidity position compared to previous years.

It is worth noting that in 2022, the cash ratio was relatively low at 0.13, which could have indicated a potential liquidity strain for NiSource Inc during that period. However, the company managed to significantly increase its cash ratio in the following year, reflecting a more robust cash position and improved liquidity management.

Overall, the upward trend in NiSource Inc's cash ratio from 2020 to 2023 suggests a positive liquidity management strategy, enhancing the company's ability to meet its short-term obligations using available cash resources. Investors and stakeholders may view this improvement favorably as it indicates a stronger financial position and reduced risk of liquidity challenges for the company.