NiSource Inc (NI)

Debt-to-capital ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Long-term debt US$ in thousands 12,505,200 10,370,900 8,479,400 10,415,700 11,034,200
Total stockholders’ equity US$ in thousands 8,684,200 8,269,600 7,575,400 6,947,300 5,752,200
Debt-to-capital ratio 0.59 0.56 0.53 0.60 0.66

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $12,505,200K ÷ ($12,505,200K + $8,684,200K)
= 0.59

The debt-to-capital ratio for NiSource Inc has shown a declining trend from 0.66 as of December 31, 2020, to 0.59 as of December 31, 2024. This indicates that the company has been reducing its reliance on debt in relation to its overall capital structure over the years.

A decreasing debt-to-capital ratio can signal improved financial health and reduced financial risk for the company, as it implies a lower proportion of debt funding in comparison to equity. However, it's essential to consider the context in which this trend has occurred, as a low debt-to-capital ratio may also indicate underutilization of debt financing opportunities or potentially limited growth prospects.

Overall, the decreasing trend in NiSource Inc's debt-to-capital ratio suggests a positive shift towards a more balanced and sustainable capital structure, potentially enhancing the company's financial stability and resilience to economic fluctuations.