NiSource Inc (NI)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	1,536,300	1,498,500	1,504,200	1,587,200	1,918,200	2,269,900	2,390,400	2,511,600	2,465,700	2,229,600	2,121,000	1,966,500	1,742,100	1,155,700	1,141,700	1,204,100	1,196,400	1,579,800	1,517,100	1,413,400
Inventory	US$ in thousands	389,100	391,300	373,200	323,600	503,200	541,500	462,700	376,300	751,900	800,100	491,600	263,200	498,700	471,400	330,900	246,200	401,100	396,500	311,800	254,000
Inventory turnover		3.95	3.83	4.03	4.90	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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,536,300K ÷ $389,100K
= 3.95

NiSource Inc's inventory turnover ratio has shown fluctuations over the periods reported, indicating changes in how efficiently the company manages its inventory. A higher inventory turnover ratio generally indicates that the company is selling goods quickly and efficiently.

From March 31, 2020, to December 31, 2020, the inventory turnover decreased steadily from 5.56 to 2.98, suggesting a potential buildup of inventory or slower sales during this period. However, a slight increase was observed in the subsequent periods up to June 30, 2021, before declining again. This fluctuation could indicate varying sales volumes or inventory management challenges during those periods.

From March 31, 2022, there was a notable increase in the inventory turnover ratio, reaching a peak of 7.47, which suggests improved inventory management efficiency or a rise in sales relative to the level of inventory. However, the ratio decreased in the following periods but generally remained higher compared to previous years.

Overall, NiSource Inc's inventory turnover ratio has shown variability, indicating fluctuations in inventory management efficiency and sales performance. It is essential for the company to monitor these ratios closely to ensure optimal inventory control and operational effectiveness.