NiSource Inc (NI)

Solvency ratios

	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
Debt-to-assets ratio	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	0.39	0.40	0.36	0.34
Debt-to-capital ratio	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	0.59	0.60	0.57	0.57
Debt-to-equity ratio	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	1.46	1.52	1.31	1.30
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

NiSource Inc's solvency ratios provide insight into the company's ability to meet its long-term financial obligations.

1. Debt-to-assets ratio: This ratio indicates the proportion of NiSource's assets financed by debt. The trend shows a slight increase from Q1 2023 to Q4 2023, indicating a higher reliance on debt to fund company assets. However, the ratio has remained relatively stable around 0.42 to 0.46.

2. Debt-to-capital ratio: This ratio reflects the proportion of NiSource's capital structure funded by debt. The trend shows a slight increase from Q1 2023 to Q4 2023, suggesting a higher reliance on debt in the capital structure. The ratio has fluctuated between 0.58 to 0.65.

3. Debt-to-equity ratio: This ratio compares the amount of debt to the amount of equity in NiSource's capital structure. The trend shows a gradual increase from Q1 2023 to Q4 2023, indicating a higher level of debt relative to equity. The ratio ranged from 1.35 to 1.84 over the periods analyzed.

4. Financial leverage ratio: This ratio assesses the company's financial risk by comparing total assets to shareholders' equity. The trend shows fluctuations in the ratio but generally indicates an increasing trend from Q1 2022 to Q4 2023, highlighting higher financial leverage.

Overall, the analysis of NiSource Inc's solvency ratios depicts a progressive increase in the company's reliance on debt to finance its operations and investments, signaling potential risks in terms of financial leverage and debt servicing capabilities. Further monitoring and analysis of these ratios in conjunction with other financial metrics are recommended to assess the company's long-term financial health and solvency.

Coverage ratios

	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
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

Interest coverage ratio is a measure of a company's ability to meet its interest obligations on outstanding debt. NiSource Inc's interest coverage ratio has been fluctuating over the past eight quarters.

In Q4 2023, the interest coverage ratio was 2.58, indicating that NiSource's operating income was sufficient to cover its interest expenses 2.58 times. This ratio improved from the previous quarter, Q3 2023, where it was 2.93. However, it is lower than the ratios in Q2 and Q1 2023, which were 3.01 and 3.14, respectively.

Looking back to Q4 2022, NiSource's interest coverage ratio was 3.25, which was slightly higher than the most recent quarter. It has generally remained within a narrow range between 3.15 and 3.25 since Q3 2022.

Overall, NiSource Inc's interest coverage has shown some variability in recent quarters but has generally been above 2.5, reflecting the company's ability to comfortably meet its interest obligations using its operating income. The slight fluctuations in the ratio may warrant further investigation into the company's financial performance and debt management strategies.