NiSource Inc (NI)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	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	1,534,800	1,632,100	1,657,400	1,717,200
Inventory	US$ in thousands	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	424,700	448,700	318,600	215,700
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

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,918,200K ÷ $503,200K
= 3.81

NiSource Inc's inventory turnover has shown varying trends over the past eight quarters, ranging from 2.37 to 6.16. The inventory turnover ratio represents how efficiently the company manages its inventory by indicating how many times the company's inventory is sold and replaced within a specific period.

In Q1 2022, the inventory turnover was relatively high at 6.16, indicating that NiSource Inc was efficiently managing and selling its inventory during that quarter. However, this ratio decreased in subsequent quarters until Q3 2022.

In Q3 2022, the inventory turnover ratio was at its lowest point over the analyzed period, with a value of 2.37. This suggests potential inventory management challenges or slower inventory turnover during that quarter.

Subsequently, NiSource Inc managed to improve its inventory turnover, reaching a peak of 5.76 in Q1 2023. This significant improvement indicates a more efficient inventory management system, leading to a faster turnover of inventory during that period.

Overall, despite fluctuations, NiSource Inc's inventory turnover ratios suggest an effort to optimize inventory management practices and may indicate improvements in operational efficiency over the analyzed quarters.