NiSource Inc (NI)

Debt-to-capital ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	10,370,900	9,589,200	10,079,700	9,488,200	8,479,400	8,154,600	8,770,000	9,202,000	10,415,700	10,558,100	10,577,400	10,178,000	11,034,200	10,723,500	10,493,600	8,381,100	8,764,400	8,865,200	7,809,200	7,533,600
Total stockholders’ equity	US$ in thousands	8,269,600	7,212,400	7,230,400	7,674,200	7,575,400	7,193,900	7,224,600	7,201,900	6,947,300	6,494,900	6,523,100	5,931,600	5,752,200	5,424,900	5,661,800	5,741,400	5,986,700	5,848,500	5,976,200	5,779,600
Debt-to-capital ratio		0.56	0.57	0.58	0.55	0.53	0.53	0.55	0.56	0.60	0.62	0.62	0.63	0.66	0.66	0.65	0.59	0.59	0.60	0.57	0.57

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 for NiSource Inc has remained relatively stable over the past eight quarters, ranging from 0.58 to 0.65. This ratio indicates the proportion of the company's capital structure that is financed by debt, with the remainder funded by equity.

A ratio of 0.63 in Q4 2023 suggests that 63% of NiSource's capital is derived from debt, while the remaining 37% is from equity. This indicates that the company relies moderately on debt to finance its operations and investments.

Although there have been slight fluctuations in the debt-to-capital ratio over the quarters, it generally hovers around the 0.60 range, indicating a consistent capital structure mix. This stability may suggest that NiSource has a well-managed debt level relative to its overall capitalization.

Overall, based on the trend of the debt-to-capital ratio over the past two years, NiSource Inc appears to maintain a balanced approach to capital structure management, with a reasonable reliance on debt financing to support its business activities.