NiSource Inc (NI)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	4,817,400	5,278,400	5,340,500	5,433,700	5,341,000	5,038,000	4,907,900	4,710,700	4,383,000	3,824,700	3,767,800	3,744,500	3,804,400	5,272,200	5,301,200	5,348,900	5,613,200	5,775,000	5,738,500	5,735,100
Property, plant and equipment	US$ in thousands	22,274,900	21,712,000	21,175,200	20,227,600	19,842,600	18,991,000	18,511,700	18,120,700	17,881,800	17,521,100	17,155,100	16,836,700	16,619,500	16,079,000	15,772,400	15,587,200	16,912,200	16,541,800	16,192,800	72,400
Fixed asset turnover		0.22	0.24	0.25	0.27	0.27	0.27	0.27	0.26	0.25	0.22	0.22	0.22	0.23	0.33	0.34	0.34	0.33	0.35	0.35	79.21

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,817,400K ÷ $22,274,900K
= 0.22

The fixed asset turnover ratio of NiSource Inc has been relatively stable over the past eight quarters, fluctuating between 0.25 and 0.29. This ratio indicates how efficiently the company is generating revenue from its investment in fixed assets. A fixed asset turnover ratio of less than 1 suggests that NiSource Inc is not effectively utilizing its fixed assets to generate sales.

The slight increase in the fixed asset turnover ratio from 0.25 in Q4 2023 to 0.29 in Q1 2023 indicates a positive trend in the company's ability to generate sales from its fixed assets. This improvement may be attributed to factors such as increased operational efficiency, better asset utilization, or increased revenue generation from fixed assets.

Overall, a fixed asset turnover ratio between 0.25 and 0.29 suggests that NiSource Inc may have room for improvement in optimizing its fixed asset utilization to enhance revenue generation. It is important for the company to continue monitoring and improving this ratio to achieve better efficiency and profitability in the long run.