NiSource Inc (NI)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	4,499,400	2,584,300	1,920,800	1,659,400	1,853,900
Total current liabilities	US$ in thousands	5,265,100	4,660,500	2,746,200	2,279,400	3,745,800
Current ratio		0.85	0.55	0.70	0.73	0.49

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $4,499,400K ÷ $5,265,100K
= 0.85

NiSource Inc's current ratio has shown fluctuations over the past five years. The current ratio measures the company's ability to meet its short-term liabilities with its current assets.

In 2023, the current ratio improved to 0.85 from 0.55 in 2022, indicating a better ability to cover short-term obligations. This increase suggests that NiSource Inc may have increased its current assets relative to its current liabilities, which could reflect improved liquidity and financial health.

However, looking back at the trend over the five-year period, the current ratio has been volatile. While there have been fluctuations, the ratio generally seems to be in an upward trend since 2019 when it was at 0.49.

It is important to note that a current ratio below 1 indicates that the company may have difficulty meeting its short-term obligations with its current assets alone. Therefore, despite the recent improvement in 2023, NiSource Inc may still need to focus on managing its liquidity effectively to ensure it can meet its short-term financial obligations.