NiSource Inc (NI)

Debt-to-equity 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-equity ratio		1.25	1.12	1.50	1.92	1.46

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $10,370,900K ÷ $8,269,600K
= 1.25

The debt-to-equity ratio of NiSource Inc has shown some fluctuation over the past five years. The ratio increased from 1.61 in 2019 to 1.69 in 2020, indicating a higher level of debt relative to equity in 2020. However, in 2021, the ratio declined to 1.41, suggesting a decrease in reliance on debt and a stronger equity position. This was followed by an increase to 1.49 in 2022, indicating a slight uptick in the utilization of debt for financing. In the latest year, 2023, the ratio further increased to 1.71, signifying a higher proportion of debt in the capital structure compared to equity.

Overall, the trend in the debt-to-equity ratio suggests that NiSource Inc has at times increased its borrowing relative to equity, potentially to fund operational activities or capital investments. It is important to assess the reasons behind these fluctuations and monitor the company's financial leverage to ensure it remains within manageable levels and does not pose excessive risk to the business.