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NiSource Financial Strength

: 3 (As of Jun. 2022)
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NiSource has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

NiSource Inc displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

NiSource's Interest Coverage for the quarter that ended in Jun. 2022 was 1.70. NiSource's debt to revenue ratio for the quarter that ended in Jun. 2022 was 2.14. As of today, NiSource's Altman Z-Score is 0.69.


Competitive Comparison

For the Utilities - Regulated Gas subindustry, NiSource's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

NiSource Financial Strength Distribution

For the Utilities - Regulated industry and Utilities sector, NiSource's Financial Strength distribution charts can be found below:

* The bar in red indicates where NiSource's Financial Strength falls into.



NiSource Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

NiSource's Interest Expense for the months ended in Jun. 2022 was $-85 Mil. Its Operating Income for the months ended in Jun. 2022 was $143 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $9,520 Mil.

NiSource's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*143.3/-84.5
=1.70

The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. NiSource Inc interest coverage is 3.23, which is low.

2. Debt to revenue ratio. The lower, the better.

NiSource's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(592.3 + 9520.2) / 4732.8
=2.14

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

NiSource has a Z-score of 0.69, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.69 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


NiSource  (NYSE:NI) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

NiSource has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


NiSource Financial Strength Related Terms

Thank you for viewing the detailed overview of NiSource's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


NiSource Business Description

NiSource logo
Address
801 East 86th Avenue, Merrillville, IN, USA, 46410
NiSource is one of the nation's largest natural gas distribution companies with approximately 3.5 million customers in Indiana, Kentucky, Maryland, Ohio, Pennsylvania, and Virginia. NiSource's electric utility transmits and distributes electricity in northern Indiana to about 500,000 customers. The regulated electric utility also owns more than 3,000 megawatts of generation capacity, most of which is now coal-fired but is being replaced by natural gas and renewable energy.
Executives
Johnson William D director 77 BEALE ST PO BOX 770000 SAN FRANCISCO CA 94177
Lee Cassandra S. director 7615 ZIONSVILLE RD INDIANAPOLIS IN 46268
Barbour Sondra L director 6801 ROCKLEDGE DRIVE BETHESDA MD 20817
Cuccia Kimberly S officer: VP, Interim GC & Corp Sec 801 E. 86TH AVENUE MERRILLVILLE IN 46410
Gode Gunnar officer: VP & Chief Accounting Officer 1000 MAINE AVENUE, SW WASHINGTON DC 20024
D'angelo Anne-marie W officer: SVP, Gen Counsel & Corp Sec 801 E. 86TH AVENUE MERRILLVILLE IN 46410
Anderson Shawn officer: SVP & Chief Strategy & Risk 801 E. 86TH AVENUE MERRILLVILLE IN 46410
Creekmur Daniel A officer: SVP & President, Gas Utilities 801 E. 86TH AVENUE MERRILLVILLE IN 46410
Hooper Michael officer: SVP and President, NIPSCO 801 E. 86TH AVENUE MERRILLVILLE IN 46410
Yates Lloyd M director 1N 2ND ST HARTSVILLE SC 29550
Shafer Charles Edward Ii officer: SVP & Chief Safety Officer 801 E. 86TH AVENUE MERRILLVILLE IN 46410
Keener Kenneth E officer: SVP HR & Chief HR Officer 801 E. 86TH AVENUE MERRILLVILLE IN 46410
Hersman Deborah director 801 E. 86TH AVENUE MERRILLVILLE IN 46410
Bunting Theodore H Jr director P. O. BOX 61000 NEW ORLEANS LA 70161
Kempic Mark officer: Chief Transformation Officer 801 E. 86TH AVENUE MERRILLVILLE IN 46410

NiSource Headlines

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