NiSource Inc (NI)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	760,400	714,300	804,100	584,900	-17,600
Total assets	US$ in thousands	31,788,100	31,077,200	26,736,600	24,156,900	22,040,500
ROA		2.39%	2.30%	3.01%	2.42%	-0.08%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $760,400K ÷ $31,788,100K
= 2.39%

Based on the provided data, NiSource Inc's return on assets (ROA) has exhibited variability over the past five years. The ROA was negative at -0.08% as of December 31, 2020, indicating that the company was not generating a positive return on its assets during that period.

However, there was a notable improvement in the following years, with the ROA increasing to 2.42% as of December 31, 2021. This suggests that NiSource Inc became more efficient in generating profits from its assets compared to the previous year.

The trend continued to be positive in the subsequent years, with the ROA reaching 3.01% as of December 31, 2022, before slightly decreasing to 2.30% as of December 31, 2023, and then increasing again to 2.39% as of December 31, 2024. These figures indicate that, overall, NiSource Inc has been able to effectively utilize its assets to generate profits, although there has been some fluctuation in performance.

Analysts and investors typically look for consistent or improving ROA figures as it reflects the company's ability to generate profits relative to its asset base. In the case of NiSource Inc, the positive trend in ROA over the years suggests a favorable utilization of assets to enhance profitability. However, continued monitoring of the company's ROA is recommended to assess the sustainability of its asset efficiency and profitability levels.