NiSource Inc (NI)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 0.51 0.46 0.78 0.66 0.85 0.41 0.45 0.60 0.55 0.57 0.63 0.72 0.70 0.65 0.81 0.71 0.73 0.82 0.89 0.78
Quick ratio 0.27 0.20 0.29 0.30 0.59 0.14 0.18 0.30 0.26 0.20 0.31 0.41 0.39 0.25 0.38 0.39 0.55 0.17 0.22 0.22
Cash ratio 0.04 0.04 0.04 0.03 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

NiSource Inc's liquidity ratios indicate its ability to meet short-term obligations and manage cash effectively. The current ratio has shown fluctuation over the years, starting at a low of 0.55 in December 2024, peaking at 0.89 in June 2020, and ending at 0.51 in December 2024. This trend suggests a somewhat volatile ability to cover current liabilities with current assets.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, shows a similar pattern of variability. It ranged between 0.14 in September 2023 and 0.59 in December 2023. Notably, the quick ratio was stronger than the current ratio in some periods, implying that NiSource Inc may have a significant portion of its current assets tied up in inventory.

The cash ratio, which specifically assesses the ability to cover current liabilities with cash and cash equivalents, also demonstrates fluctuations over time. It reached a low of 0.01 in September 2023 and a high of 0.43 in December 2023. While the cash ratio provides a conservative view of liquidity, the variability seen in NiSource Inc's cash holdings may indicate challenges in maintaining a consistent cash position.

Overall, the liquidity ratios of NiSource Inc display fluctuations over the periods analyzed, pointing to varying levels of short-term liquidity and cash management capabilities. It is essential for the company to closely monitor and manage its liquidity position to ensure it can meet its financial obligations efficiently.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days -74.15 -9.02 -1.12 1.28 18.46 22.23 2.21 23.35 49.35 64.38 25.83 6.67 27.04 45.28 6.81 -16.13 51.05 32.91 15.75 -16.08

The Cash Conversion Cycle (CCC) of NiSource Inc has shown significant fluctuations over the analyzed periods. The CCC represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From March 31, 2020, to September 30, 2020, NiSource Inc had a negative CCC, indicating efficient management of cash flows, with cash being collected from customers before the company paid its suppliers. However, by December 31, 2020, the CCC increased significantly to 51.05 days, suggesting a lengthening of the operating cycle, potentially due to issues with inventory management or difficulties in collecting accounts receivable.

The CCC fluctuated over the subsequent periods, showing improvements at times (e.g., March 31, 2021, and June 30, 2021) and deteriorations at other times (e.g., September 30, 2021, and September 30, 2022). These fluctuations could be attributed to changes in the company's operational efficiency, supply chain dynamics, or customer payment behavior.

As of December 31, 2024, the CCC had decreased significantly to -74.15 days, which implies that NiSource Inc is effectively managing its working capital, possibly indicating swift collections from customers or extended payment terms with suppliers.

Overall, the analysis of NiSource Inc's CCC indicates varying efficiency in managing cash flows and working capital over the analyzed period. Further investigation and comparison with industry benchmarks may provide additional insights into the company's financial performance and management practices.