NiSource Inc (NI)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.95 | 3.78 | 3.28 | 3.48 | 3.74 | |
| DOH | days | 92.44 | 96.69 | 111.30 | 105.02 | 97.60 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.95
= 92.44
NiSource Inc's days of inventory on hand (DOH) have shown fluctuations in the past five years. The trend reflects an increase from 97.60 days as of December 31, 2020, to 105.02 days as of December 31, 2021, and further to 111.30 days as of December 31, 2022. However, there was a slight decrease to 96.69 days as of December 31, 2023, followed by a notable reduction to 92.44 days as of December 31, 2024.
The upward trend in DOH from 2020 to 2022 could indicate potential issues related to inventory management, such as overstocking or slower inventory turnover. The subsequent decrease in 2023 and 2024 suggests improvements in managing inventory levels, leading to a shorter period of time taken to sell or use up inventory.
Over the period analyzed, it is essential for NiSource Inc to carefully monitor its inventory levels to strike a balance between maintaining adequate inventory for business operations and minimizing holding costs. Further analysis of the company's operational efficiency and inventory management practices would provide additional insights into the factors driving these changes in DOH.
Peer comparison
Dec 31, 2024