NiSource Inc (NI)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	10,370,900	8,479,400	10,415,700	11,034,200	8,764,400
Total stockholders’ equity	US$ in thousands	8,269,600	7,575,400	6,947,300	5,752,200	5,986,700
Debt-to-capital ratio		0.56	0.53	0.60	0.66	0.59

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $10,370,900K ÷ ($10,370,900K + $8,269,600K)
= 0.56

The debt-to-capital ratio of NiSource Inc has shown some fluctuations over the past five years. As of December 31, 2023, the ratio stands at 0.63, indicating that the company finances 63% of its capital through debt. This represents a slight increase from the previous year (0.60 in 2022) and is higher compared to the ratios in 2021 and 2019, which were 0.59 and 0.62 respectively.

The increase in the debt-to-capital ratio suggests that NiSource has taken on more debt in relation to its total capital over the past year. This could be due to various reasons such as funding for capital expenditures, acquisitions, or other strategic initiatives.

It is essential for stakeholders to closely monitor the trend in the debt-to-capital ratio as a significant increase could indicate higher financial risk and potential challenges in meeting debt obligations. Additionally, a high debt-to-capital ratio may impact the company's credit rating and borrowing costs. Further analysis of the company's overall debt levels, profitability, and cash flow should be considered to gain a comprehensive understanding of its financial health and leverage position.