NiSource Inc (NI)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.39 | 0.42 | 0.39 | 0.37 | 0.33 | 0.34 | 0.37 | 0.35 | 0.32 | 0.32 | 0.35 | 0.38 | 0.43 | 0.46 | 0.47 | 0.46 | 0.50 | 0.47 | 0.47 | 0.37 |
| Debt-to-capital ratio | 0.59 | 0.61 | 0.60 | 0.58 | 0.56 | 0.57 | 0.58 | 0.55 | 0.53 | 0.53 | 0.55 | 0.56 | 0.60 | 0.62 | 0.62 | 0.63 | 0.66 | 0.66 | 0.65 | 0.59 |
| Debt-to-equity ratio | 1.44 | 1.55 | 1.49 | 1.37 | 1.25 | 1.33 | 1.39 | 1.24 | 1.12 | 1.13 | 1.21 | 1.28 | 1.50 | 1.63 | 1.62 | 1.72 | 1.92 | 1.98 | 1.85 | 1.46 |
| 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 |
NiSource Inc's solvency ratios provide insights into the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets financed by debt. NiSource's debt-to-assets ratio has shown a general decreasing trend from 0.37 in March 2020 to 0.39 in December 2024. A lower ratio indicates better solvency and financial health.
2. Debt-to-capital ratio: The debt-to-capital ratio measures the extent of a company's capital that is funded by debt. NiSource's ratio decreased from 0.59 in March 2020 to 0.59 in December 2024, indicating a relatively stable capital structure over the period.
3. Debt-to-equity ratio: This ratio compares the amount of debt to the amount of shareholders' equity. NiSource's debt-to-equity ratio decreased from 1.46 in March 2020 to 1.44 in December 2024, suggesting a declining reliance on debt financing in relation to equity.
4. Financial leverage ratio: The financial leverage ratio assesses the company's level of financial risk by comparing total assets to shareholders' equity. NiSource's financial leverage ratio fluctuated but generally remained within a narrow range between 3.38 and 3.96 over the analyzed period, implying a moderate level of leverage.
Overall, NiSource Inc's solvency ratios indicate a prudent approach towards managing its long-term financial obligations, with a decreasing trend in debt ratios and relatively stable financial leverage over the years.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
NiSource Inc's interest coverage ratio has shown fluctuations over the periods provided in the data. The interest coverage ratio is a measure of a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a stronger ability to cover interest payments.
Looking at the data, the interest coverage ratio for NiSource Inc was relatively low at the beginning of the period, with a value of 1.77 as of March 31, 2020. This low ratio suggests that the company's operating income may not have been sufficient to cover its interest expenses adequately.
The interest coverage ratio deteriorated further by June 30, 2020, dropping to 0.79, indicating a significant decrease in the company's ability to cover its interest payments. However, the ratio improved slightly by the end of 2020, reaching 0.91 as of December 31, 2020.
From March 31, 2021, onwards, NiSource Inc's interest coverage ratio showed a more positive trend, steadily increasing to reach a peak of 4.81 by December 31, 2024. This upward trend indicates an improvement in the company's ability to cover its interest obligations over the period.
Overall, the trend in NiSource Inc's interest coverage ratio demonstrates variability initially, with lower ratios indicating potential challenges in meeting interest payments. However, the company's performance improved over time, with a significant increase in the interest coverage ratio in the latter part of the period, suggesting a stronger financial position and better ability to service its debt.