NiSource Inc (NI)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	2,080,200	4,499,400	2,584,300	1,920,800	1,659,400
Total current liabilities	US$ in thousands	4,113,400	5,265,100	4,660,500	2,746,200	2,279,400
Current ratio		0.51	0.85	0.55	0.70	0.73

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,080,200K ÷ $4,113,400K
= 0.51

The current ratio of NiSource Inc has shown fluctuations over the past five years. In December 31, 2020, the current ratio was 0.73, indicating that the company had $0.73 in current assets for every $1 in current liabilities. By December 31, 2021, the current ratio decreased to 0.70, suggesting a slight weakening in the company's ability to cover its short-term obligations.

However, by December 31, 2022, the current ratio declined further to 0.55, which may raise concerns about the company's liquidity position and its ability to meet its short-term obligations. This drop could be attributed to various factors such as increased current liabilities or a decrease in current assets.

The company's financial position improved by December 31, 2023, with the current ratio increasing to 0.85. This indicates that NiSource Inc had $0.85 in current assets for every $1 of current liabilities, reflecting a better ability to fulfill its short-term financial obligations.

Nevertheless, there was another decline in the current ratio by December 31, 2024, falling to 0.51. This could be a sign of potential liquidity challenges, as the company may struggle to cover its current liabilities with the available current assets.

Overall, the trend in NiSource Inc's current ratio shows variability over the years, highlighting the importance of closely monitoring the company's liquidity position to ensure its financial health and stability.