NiSource Inc (NI)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	885,500	851,700	408,800	64,300
Interest expense (ttm)	US$ in thousands	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	378,900	373,700	361,200	355,800
Interest coverage		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	2.34	2.28	1.13	0.18

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,343,400K ÷ $489,600K
= 2.74

Over the past eight quarters, NiSource Inc's interest coverage ratio has ranged from 2.58 to 3.25, indicating the company's ability to meet its interest obligations from its operating income. The trend shows a relatively consistent level of interest coverage, with a slight fluctuation between quarters but generally remaining above 3. This suggests that NiSource Inc has a healthy financial position and is generating sufficient earnings to comfortably cover its interest expenses. However, it is essential for the company to monitor this ratio closely to ensure continued financial stability and the ability to meet debt obligations in the long term.