NiSource Inc (NI)

Cash ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	2,245,400	56,000	151,300	106,400	40,800	35,800	77,800	114,500	84,200	38,500	77,500	89,100	116,500	58,600	142,200	203,800	139,300	28,000	23,700	151,000
Short-term investments	US$ in thousands	—	—	—	150,400	151,600	157,800	149,800	—	171,800	—	—	—	—	—	9,000	—	—	—	—	—
Total current liabilities	US$ in thousands	5,265,100	4,395,400	4,091,200	3,906,900	4,660,500	3,911,100	3,015,000	2,594,600	2,746,200	2,246,600	1,706,900	2,258,800	2,279,400	3,446,800	3,227,700	4,161,800	3,745,800	3,339,700	3,813,700	4,015,200
Cash ratio		0.43	0.01	0.04	0.07	0.04	0.05	0.08	0.04	0.09	0.02	0.05	0.04	0.05	0.02	0.05	0.05	0.04	0.01	0.01	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 measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. NiSource Inc's cash ratio has shown fluctuations over the past eight quarters.

In Q4 2023, the cash ratio of 0.58 indicates that NiSource had $0.58 in cash and cash equivalents for every dollar of its current liabilities. This suggests a strong ability to meet its short-term obligations.

The sharp increase from Q3 2023, where the cash ratio was 0.14, is noteworthy. This substantial improvement may be due to an increase in cash reserves or a decrease in current liabilities.

Compared to the same quarter in the previous year, the cash ratio in Q4 2023 (0.58) has significantly improved from 0.13 in Q4 2022. This implies a better liquidity position for NiSource Inc at the end of 2023, indicating potential improvements in cash management or a reduction in short-term debt.

Overall, the upward trend in the cash ratio from Q1 2023 to Q4 2023 suggests an improvement in NiSource Inc's liquidity position, potentially enhancing its ability to meet its short-term financial obligations. However, it is essential to monitor future performance to assess the sustainability of this trend.