NiSource Inc (NI)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 156,600 | 2,245,400 | 40,800 | 84,200 | 116,500 |
| Short-term investments | US$ in thousands | — | 159,100 | 151,600 | 171,800 | — |
| Receivables | US$ in thousands | 964,200 | 862,000 | 1,041,900 | 825,600 | 1,129,600 |
| Total current liabilities | US$ in thousands | 4,113,400 | 5,265,100 | 4,660,500 | 2,746,200 | 2,279,400 |
| Quick ratio | 0.27 | 0.62 | 0.26 | 0.39 | 0.55 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($156,600K
+ $—K
+ $964,200K)
÷ $4,113,400K
= 0.27
Based on the data provided for NiSource Inc's quick ratio, we observe significant fluctuations over the period from December 31, 2020, to December 31, 2024. The quick ratio is a measure of a company's short-term liquidity and its ability to meet its immediate financial obligations using its most liquid assets.
- In December 2020, NiSource had a quick ratio of 0.55, indicating that the company had $0.55 of liquid assets available to cover each dollar of current liabilities.
- By December 2021, the quick ratio declined to 0.39, suggesting a decrease in the company's ability to meet its short-term obligations with its quick assets.
- The quick ratio further decreased to 0.26 by December 2022, indicating a potential liquidity concern for NiSource as its quick assets may not be sufficient to cover its current liabilities.
- However, there was a notable improvement by December 2023, with the quick ratio increasing to 0.62, signifying a stronger liquidity position compared to the previous year.
- In December 2024, the quick ratio dropped again to 0.27, raising concerns about NiSource's ability to promptly settle its short-term debts with its readily available assets.
Overall, the fluctuating trend in NiSource Inc's quick ratio suggests varying levels of liquidity risk and the company's ability to manage its short-term financial obligations effectively. It would be essential for stakeholders to monitor these changes closely to assess the company's financial health and liquidity position accurately.
Peer comparison
Dec 31, 2024