NiSource Inc (NI)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 31,788,100 | 30,828,100 | 29,897,600 | 29,338,100 | 31,077,200 | 27,828,200 | 27,343,700 | 26,853,700 | 26,736,600 | 25,576,400 | 24,813,800 | 24,365,500 | 24,156,900 | 22,778,600 | 22,313,800 | 22,194,500 | 22,040,500 | 22,701,500 | 22,436,500 | 22,592,700 |
| 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 |
| Financial leverage ratio | 3.66 | 3.69 | 3.80 | 3.72 | 3.76 | 3.86 | 3.78 | 3.50 | 3.53 | 3.56 | 3.43 | 3.38 | 3.48 | 3.51 | 3.42 | 3.74 | 3.83 | 4.18 | 3.96 | 3.94 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $31,788,100K ÷ $8,684,200K
= 3.66
The financial leverage ratio of NiSource Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio increased from 3.94 on March 31, 2020, to a peak of 4.18 on September 30, 2020, indicating higher reliance on debt to finance its operations during that period. However, the ratio declined to 3.42 by June 30, 2021, suggesting a decrease in the company's financial leverage.
Subsequently, the financial leverage ratio slightly increased to around 3.56 by September 30, 2022, before fluctuating within a range between 3.38 and 3.80 up to June 30, 2024. These fluctuations could be indicative of NiSource Inc managing its debt levels to achieve an optimal balance between debt and equity financing.
Overall, the financial leverage ratio of NiSource Inc remained relatively stable around an average of 3.60 over the period, signifying a moderate level of leverage in the company's capital structure. It is essential for stakeholders to monitor this ratio to assess the company's ability to meet its financial obligations and manage its debt effectively.
Peer comparison
Dec 31, 2024