NiSource Inc (NI)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	156,600	2,245,400	40,800	84,200	116,500
Short-term investments	US$ in thousands	—	159,100	151,600	171,800	—
Total current liabilities	US$ in thousands	4,113,400	5,265,100	4,660,500	2,746,200	2,279,400
Cash ratio		0.04	0.46	0.04	0.09	0.05

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($156,600K + $—K) ÷ $4,113,400K
= 0.04

The cash ratio of NiSource Inc has fluctuated over the years based on the provided data. As of December 31, 2020, the cash ratio was 0.05, indicating that the company had $0.05 of cash for every $1 of current liabilities.

There was an improvement in the cash ratio by the end of 2021, reaching 0.09, suggesting an increase in the company's ability to cover its short-term obligations with its cash holdings. However, by the end of 2022, the cash ratio decreased to 0.04, signaling a reduction in the company's liquidity position.

In a significant turnaround, by December 31, 2023, the cash ratio surged to 0.46, implying a substantial increase in NiSource Inc's ability to meet its short-term liabilities with cash on hand. This surge indicates a strong liquidity position that year.

Subsequently, by the end of 2024, the cash ratio fell back to 0.04, returning to a similar level as seen in 2022. This decrease might suggest a potential decrease in the company's ability to cover short-term obligations with cash reserves.

In conclusion, NiSource Inc's cash ratio has demonstrated variability over the years, indicating fluctuations in the company's liquidity position and ability to meet short-term obligations using available cash resources. Further assessment and analysis would be required to understand the factors driving these fluctuations and to evaluate the company's overall financial health.