NiSource Inc (NI)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		9.49	8.04	7.30	5.39	5.59	9.27	8.85	5.89	5.13	8.59	6.87	4.90	5.31	7.26	6.68	4.71	3.37	10.11	9.71	7.47
DSO	days	38.46	45.37	50.03	67.72	65.31	39.39	41.25	61.99	71.20	42.51	53.14	74.47	68.75	50.27	54.61	77.44	108.38	36.10	37.57	48.89

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.49
= 38.46

The Days Sales Outstanding (DSO) of NiSource Inc indicates the average number of days it takes for the company to collect payments from its customers for goods or services sold. A lower DSO value is generally preferable as it signifies a shorter time period for the company to convert its accounts receivable into cash.

Analyzing the DSO trend over the years, we observe fluctuations in the collection period for NiSource Inc. The DSO was relatively stable around 40-50 days from March 2020 to September 2021, indicating efficient accounts receivable management. However, there was a significant spike in DSO to 108.38 days in December 2020, which may suggest challenges in collections during that period.

Subsequently, the company managed to reduce its DSO to around 50-70 days until September 2022, indicating improvements in collection efficiency. Notably, the DSO experienced a notable drop to 39.39 days by September 2023, reflecting strong performance in collecting receivables efficiently within a shorter time frame.

From December 2023 to December 2024, the DSO remained relatively stable between 38.46 and 50.03 days, reflecting consistent management of accounts receivable during this period.

Overall, it is essential for NiSource Inc to monitor its DSO closely to ensure efficient cash flow management and timely collections, which can have a direct impact on the company's liquidity and financial performance.