NiSource Inc (NI)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	2,245,400	40,800	84,200	116,500	139,300
Short-term investments	US$ in thousands	—	151,600	171,800	—	—
Receivables	US$ in thousands	862,000	1,041,900	825,600	1,129,600	1,207,400
Total current liabilities	US$ in thousands	5,265,100	4,660,500	2,746,200	2,279,400	3,745,800
Quick ratio		0.59	0.26	0.39	0.55	0.36

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,245,400K + $—K + $862,000K) ÷ $5,265,100K
= 0.59

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates a better ability to cover short-term liabilities.

Looking at NiSource Inc's quick ratio over the past five years, we observe fluctuations. In 2023, the quick ratio improved to 0.75 from 0.39 in 2022. This increase indicates a stronger ability to cover short-term liabilities with liquid assets. However, it is important to note that the quick ratio is still below 1, suggesting that NiSource Inc may face challenges in meeting all of its short-term obligations with its readily available assets alone.

Comparing the 2023 quick ratio to prior years, we see an improvement from 0.48 in 2021 and 0.51 in 2020, indicating progress in managing short-term liquidity. In 2019, the quick ratio was 0.38, showing a slight improvement by 2023.

Overall, while NiSource Inc's quick ratio has shown improvement in 2023 compared to the previous years, it still falls below the ideal benchmark of 1. Investors and stakeholders should continue to monitor this ratio to assess the company's ability to meet short-term obligations effectively.