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NI (NiSource) Financial Strength : 4 (As of Mar. 2025)


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What is NiSource Financial Strength?

NiSource has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and 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.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

NiSource's Interest Coverage for the quarter that ended in Mar. 2025 was 5.72. NiSource's debt to revenue ratio for the quarter that ended in Mar. 2025 was 1.70. As of today, NiSource's Altman Z-Score is 0.78.


Competitive Comparison of NiSource's Financial Strength

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's Financial Strength Distribution in the Utilities - Regulated Industry

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.


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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 Mar. 2025 was $-133 Mil. Its Operating Income for the months ended in Mar. 2025 was $760 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $12,833 Mil.

NiSource's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*759.7/-132.8
=5.72

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

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

NiSource's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(2052 + 12833.1) / 8732.8
=1.70

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 0.78, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.78 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 rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

NiSource has the Financial Strength Rank of 4.


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

Traded in Other Exchanges
Address
801 East 86th Avenue, Merrillville, IN, USA, 46410
NiSource is one of the nation's largest natural gas distribution companies with 3.2 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, including coal, natural gas, and renewable energy.
Executives
Lloyd M Yates director 1N 2ND ST, HARTSVILLE SC 29550
Michael E Jesanis director C/O NISOURCE INC., 801 E. 86TH AVENUE, MERRILLVILLE IN 46410
Gunnar Gode officer: VP & Chief Accounting Officer 1000 MAINE AVENUE, SW, WASHINGTON DC 20024
Shawn Anderson officer: SVP & Chief Strategy & Risk 801 E. 86TH AVENUE, MERRILLVILLE IN 46410
William Jr. Jefferson officer: EVP Operations & CSO 801 E. 86TH AVENUE, MERRILLVILLE IN 46410
Melody Birmingham officer: EVP & Chief Innovation Officer 550 S. TRYON STREET, CHARLOTTE NC 28202
Melanie B. Berman officer: SVP & CHRO 801 E. 86TH AVENUE, MERRILLVILLE IN 46410
Donald Eugene Brown officer: Executive Vice President 801 E. 86TH AVENUE, MERRILLVILLE IN 46410
Kimberly S Cuccia officer: VP, Interim GC & Corp Sec 801 E. 86TH AVENUE, MERRILLVILLE IN 46410
Michael Luhrs officer: EVP, Strategy & Risk & CCO P.O. BOX 14720, MADISON WI 53708-0720
William D Johnson director 77 BEALE ST, PO BOX 770000, SAN FRANCISCO CA 94177
Cassandra S. Lee director 7615 ZIONSVILLE RD, INDIANAPOLIS IN 46268
Sondra L Barbour director 6801 ROCKLEDGE DRIVE, BETHESDA MD 20817
Eric L Butler director 1400 DOUGLAS STREET, STOP 1210, OMAHA NE 68179
Daniel A Creekmur officer: SVP & President, Gas Utilities 801 E. 86TH AVENUE, MERRILLVILLE IN 46410