GURUFOCUS.COM » STOCK LIST » USA » NYSE » NiSource Inc (NYSE:NI) » Definitions » Altman Z-Score
Switch to:

NiSource Altman Z-Score

: 0.69 (As of Today)
View and export this data going back to 1988. Start your Free Trial

Warning Sign:

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

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

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for NiSource's Altman Z-Score or its related term are showing as below:

NI' s Altman Z-Score Range Over the Past 10 Years
Min: 0.35   Med: 0.6   Max: 1.2
Current: 0.69

During the past 13 years, NiSource's highest Altman Z-Score was 1.20. The lowest was 0.35. And the median was 0.60.


NiSource Altman Z-Score Historical Data

The historical data trend for NiSource's Altman Z-Score can be seen below:

* 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.

* Premium members only.

NiSource Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.55 0.41 0.56 0.45 0.61

NiSource Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Altman Z-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.55 0.55 0.61 0.72 0.66

Competitive Comparison

For the Utilities - Regulated Gas subindustry, NiSource's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution

For the Utilities - Regulated industry and Utilities sector, NiSource's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where NiSource's Altman Z-Score falls into.



NiSource Altman Z-Score Calculation

Altman 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.

NiSource's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*-0.0445+1.4*-0.0568+3.3*0.0485+0.6*0.7338+1.0*0.2186
=0.69

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2022:
Total Assets was $24,814 Mil.
Total Current Assets was $1,912 Mil.
Total Current Liabilities was $3,015 Mil.
Retained Earnings was $-1,409 Mil.
Pre-Tax Income was 67.8 + 527.5 + 200.4 + 77 = $873 Mil.
Interest Expense was -84.5 + -83.7 + -78.9 + -84.4 = $-332 Mil.
Revenue was 1183.2 + 1873.3 + 1408.6 + 959.4 = $5,425 Mil.
Market Cap (Today) was $12,676 Mil.
Total Liabilities was $17,273 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(1911.7 - 3015)/24813.8
=-0.0445

X2=Retained Earnings/Total Assets
=-1408.9/24813.8
=-0.0568

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(872.7 - -331.5)/24813.8
=0.0485

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=12675.883/17273.4
=0.7338

X5=Revenue/Total Assets
=5424.5/24813.8
=0.2186

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

NiSource has a Altman Z-Score of 0.69 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


NiSource  (NYSE:NI) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


NiSource Altman Z-Score Related Terms

Thank you for viewing the detailed overview of NiSource's Altman Z-Score 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

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)