NiSource Inc (NI)

Debt-to-equity 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-equity ratio		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	1.46	1.52	1.31	1.30

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 eight quarters. The ratio increased from 1.35 in Q1 2022 to a peak of 1.84 in Q3 2023, before slightly decreasing to 1.71 in Q4 2023. This indicates that the company has been relying more on debt to finance its operations compared to shareholder equity.

While the increase in the ratio could signal potential financial risk due to higher debt levels, it is essential to consider the industry norms and the company's financial strategy. A higher debt-to-equity ratio may not always be a cause for concern if the company can generate sufficient cash flow to cover its debt obligations and if the debt is used to fund growth opportunities that will ultimately benefit shareholders.

It is crucial for stakeholders to monitor NiSource Inc's debt levels and assess the company's ability to manage its debt effectively, maintain liquidity, and achieve sustainable long-term growth.