NiSource Inc (NI)

Days of inventory on hand (DOH)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		3.81	4.19	5.17	6.67	3.28	2.79	4.31	7.47	3.49	2.45	3.45	4.89	2.98	3.98	4.87	5.56	3.61	3.64	5.20	7.96
DOH	days	95.75	87.07	70.65	54.69	111.30	130.98	84.60	48.85	104.49	148.88	105.79	74.63	122.37	91.61	75.02	65.59	101.00	100.35	70.16	45.85

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.81
= 95.75

The days of inventory on hand (DOH) for NiSource Inc have shown fluctuating trends over the past eight quarters. In Q4 2023, the DOH stood at 119.79 days, indicating an increase from the previous quarter's 104.71 days. This upward trend aligns with the pattern observed in the past, with Q3 2022 marking the highest DOH of 153.70 days.

The significant variation in DOH over the quarters reflects potential challenges in managing inventory levels efficiently. The company may have experienced issues such as overstocking or slow-moving inventory, impacting working capital and operational efficiency. Conversely, lower DOH values, like the 59.22 days in Q1 2022, suggest a more streamlined inventory management process.

Analyzing the DOH alongside other financial metrics and industry benchmarks can provide a more holistic view of NiSource Inc's inventory management performance and its implications on the company's overall financial health and operational effectiveness.