NiSource Inc (NI)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.87 | 5.59 | 5.13 | 5.31 | 3.37 | |
| DSO | days | 75.00 | 65.31 | 71.20 | 68.75 | 108.38 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.87
= 75.00
NiSource Inc's Days of Sales Outstanding (DSO) is a key metric that measures how long, on average, it takes for the company to collect its accounts receivable.
From the data provided, NiSource Inc's DSO has shown a decreasing trend over the years. In December 31, 2020, the DSO was 108.38 days, indicating that it took the company over 3 months to collect its outstanding sales.
However, over the subsequent years, the DSO has decreased significantly. By December 31, 2024, the DSO had decreased to 75.00 days. This indicates that, on average, it took the company around 2.5 months to collect its accounts receivable by the end of 2024.
This improvement in DSO reflects that NiSource Inc has been able to manage its accounts receivable more efficiently, possibly due to better credit policies, improved collection processes, or a stronger customer base.
A decreasing DSO is generally viewed positively as it signifies that the company is collecting its sales more quickly, which can improve cash flow and working capital management. However, it's important for NiSource Inc to continue monitoring and managing their DSO to ensure efficient accounts receivable management in the future.
Peer comparison
Dec 31, 2024