NiSource Inc (NI)

Financial leverage 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
Total assets	US$ in thousands	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	22,659,800	22,132,300	21,974,200	21,889,900
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
Financial leverage ratio		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	3.79	3.78	3.68	3.79

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $31,077,200K ÷ $8,269,600K
= 3.76

NiSource Inc's financial leverage ratio has shown fluctuations over the past eight quarters. The ratio ranged from a low of 3.38 in Q1 2022 to a high of 3.86 in Q3 2023. Generally, the ratio has been increasing, indicating a higher level of financial leverage over time. A financial leverage ratio above 3 suggests that the company relies more on debt financing rather than equity to fund its operations and growth initiatives. This can potentially increase financial risk as the company may have higher interest payments and debt obligations to service. It is important for NiSource Inc to carefully manage its debt levels to maintain a healthy balance between debt and equity financing and ensure long-term sustainability and financial stability.