The business behind the dividend
| Measure | NI | Median | Formula |
|---|---|---|---|
| Return on equity | 9.8% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 7.4% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $-685.20m | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $-420.00m | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 28.1% | 15.0% | Operating income ÷ revenue |
| Net margin | 14.2% | 10.2% | Net income ÷ revenue |
| Debt to equity | 1.64x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 2.87x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 0.69x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 2.54x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Long-term debt to working capital — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 9.8% | 8.8% | 8.6% | 10.6% | 8.4% | -0.3% | 6.4% | -0.9% | 3.0% | 8.1% | 8.1% |
| Return on capital employed | 7.4% | 6.6% | 6.7% | 7.4% | 6.2% | 3.7% | 6.4% | 1.0% | 7.8% | 8.6% | 6.6% |
| Operating margin | 28.1% | 27.6% | 24.2% | 22.1% | 21.3% | 12.3% | 17.6% | 2.5% | 19.5% | 19.7% | 19.7% |
| Net margin | 14.2% | 14.4% | 13.4% | 14.0% | 12.4% | -0.4% | 7.6% | -1.0% | 2.7% | 7.5% | 7.6% |
| Debt to equity | 1.64x | 1.54x | 1.34x | 1.26x | 1.32x | 1.60x | 1.31x | 1.24x | 1.74x | 1.49x | 1.34x |
| Current ratio | 0.69x | 0.51x | 0.85x | 0.55x | 0.70x | 0.73x | 0.49x | 0.51x | 0.55x | 0.51x | 0.55x |
| Cash conversion | 2.54x | 2.34x | 2.71x | 1.75x | 2.08x | — | 4.13x | — | 5.78x | 2.42x | 2.54x |
How it compares in utilities
Among the 57 utilities companies here measured on GAAP earnings, Nisource pays out less than 37 of them. The median for that group is 61.5%, against this company’s 57.4%.
Closest on GAAP earnings
- American States Water (AWR) 57.5%
- H2O America (HTO) 57.5%
- Consolidated Edison (ED) 57.6%
- American Water Works (AWK) 58.2%
Same sector and same denominator, so the figures are comparable. All 58 in utilities →