NiSource Inc (NI)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,455,500 | 1,343,400 | 1,330,300 | 1,043,800 | 336,000 |
| Interest expense | US$ in thousands | 75,100 | 489,600 | 361,600 | 341,100 | 370,700 |
| Interest coverage | 19.38 | 2.74 | 3.68 | 3.06 | 0.91 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,455,500K ÷ $75,100K
= 19.38
NiSource Inc's interest coverage ratio has shown improvement over the years. In 2020, the ratio was below 1 at 0.91, indicating that the company's operating income was not sufficient to cover its interest expenses. However, by December 31, 2024, the interest coverage ratio had significantly improved to 19.38. This suggests that the company's ability to meet its interest obligations from its operating earnings has strengthened considerably.
The increasing trend in the interest coverage ratio from 2020 to 2024 indicates that NiSource's financial health has improved, as it demonstrates the company's ability to service its debt obligations with its operating profits. This positive trend bodes well for the company's financial stability and ability to manage its debt burden effectively.
Peer comparison
Dec 31, 2024