NiSource Inc (NI)
Debt-to-equity ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 12,505,200 | 12,926,500 | 11,762,200 | 10,852,300 | 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 |
| Total stockholders’ equity | US$ in thousands | 8,684,200 | 8,345,000 | 7,869,000 | 7,895,900 | 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 |
| Debt-to-equity ratio | 1.44 | 1.55 | 1.49 | 1.37 | 1.25 | 1.33 | 1.39 | 1.24 | 1.12 | 1.13 | 1.21 | 1.28 | 1.50 | 1.63 | 1.62 | 1.72 | 1.92 | 1.98 | 1.85 | 1.46 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $12,505,200K ÷ $8,684,200K
= 1.44
The debt-to-equity ratio of NiSource Inc has been fluctuating over the past few years, ranging from a high of 1.98 in September 2020 to a low of 1.12 in December 2022. This ratio measures the extent to which the company is financed by debt relative to shareholders' equity.
A higher debt-to-equity ratio indicates that the company is relying more on debt to finance its operations, which can increase financial risk. Conversely, a lower ratio suggests a more conservative capital structure with less reliance on debt financing.
NiSource Inc's debt-to-equity ratio has generally been above 1, indicating that the company has more debt than equity in its capital structure. This suggests a moderate level of financial risk, as the company has a significant amount of debt obligations compared to shareholder funds.
The decreasing trend in the debt-to-equity ratio from a peak in 2020 to a more stable range around 1.2-1.5 in recent years may indicate that NiSource Inc is gradually reducing its reliance on debt and improving its financial health. However, further analysis of the company's debt repayment plans, profitability, and overall financial performance would be necessary to fully assess its financial stability and risk profile.
Peer comparison
Dec 31, 2024