NiSource Inc (NI)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 31,788,100 | 31,077,200 | 26,736,600 | 24,156,900 | 22,040,500 |
| Total stockholders’ equity | US$ in thousands | 8,684,200 | 8,269,600 | 7,575,400 | 6,947,300 | 5,752,200 |
| Financial leverage ratio | 3.66 | 3.76 | 3.53 | 3.48 | 3.83 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $31,788,100K ÷ $8,684,200K
= 3.66
The financial leverage ratio for NiSource Inc has shown some fluctuations over the past five years. Starting at 3.83 in December 2020, the ratio decreased to 3.48 by December 2021, indicating a reduction in financial risk and dependence on debt. However, by December 2022, the ratio slightly increased to 3.53 before rising further to 3.76 by December 2023. This increase suggests a higher level of debt relative to equity in the company's capital structure. In the most recent year, December 2024, the financial leverage ratio slightly decreased to 3.66.
Overall, the trend in NiSource Inc's financial leverage ratio shows some variability, with periods of both decrease and increase. It is important for the company to carefully manage its leverage to maintain a healthy balance between debt and equity in order to sustain its financial stability and growth prospects.
Peer comparison
Dec 31, 2024