NiSource Inc (NI)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,425,100 | 1,422,500 | 1,422,300 | 1,373,000 | 1,343,400 | 1,320,200 | 1,271,200 | 1,251,300 | 1,330,300 | 1,220,000 | 1,213,300 | 1,207,800 | 1,043,800 | 989,900 | 684,900 | 625,100 | 336,000 | 65,700 | 300,600 | 665,600 |
| Interest expense (ttm) | US$ in thousands | 296,100 | 418,700 | 515,800 | 497,000 | 489,600 | 450,400 | 412,800 | 386,800 | 361,600 | 347,400 | 340,200 | 340,200 | 341,100 | 339,100 | 349,900 | 362,400 | 370,700 | 378,400 | 379,100 | 376,200 |
| Interest coverage | 4.81 | 3.40 | 2.76 | 2.76 | 2.74 | 2.93 | 3.08 | 3.24 | 3.68 | 3.51 | 3.57 | 3.55 | 3.06 | 2.92 | 1.96 | 1.72 | 0.91 | 0.17 | 0.79 | 1.77 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,425,100K ÷ $296,100K
= 4.81
NiSource Inc's interest coverage ratio has shown fluctuations over the indicated periods. The interest coverage ratio is a measure of a company's ability to meet its interest payments on outstanding debt.
The interest coverage ratio for NiSource Inc stood at 1.77 as of March 31, 2020, indicating that the company generated 1.77 times the amount of earnings needed to cover its interest expense for that period. However, there was a significant decline in the ratio to 0.79 as of June 30, 2020, implying a potential strain on the company's ability to meet its interest obligations.
Subsequently, the interest coverage ratio further decreased to 0.17 by September 30, 2020, signifying a critical situation where the company's earnings were not sufficient to cover its interest payments.
From December 31, 2020, onwards, there was a gradual improvement in NiSource Inc's interest coverage ratio. By December 31, 2024, the ratio reached 4.81, indicating a stronger ability to cover interest expenses.
Overall, the trend in NiSource Inc's interest coverage ratio indicates a period of financial challenge followed by recovery and improvement in the company's ability to meet its interest obligations.
Peer comparison
Dec 31, 2024