NiSource Inc (NI)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	1,536,300	1,899,600	2,465,700	1,733,300	1,500,000
Payables	US$ in thousands	863,100	749,400	899,500	697,800	589,000
Payables turnover		1.78	2.53	2.74	2.48	2.55

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,536,300K ÷ $863,100K
= 1.78

The payables turnover ratio for NiSource Inc has fluctuated over the years. In 2020, the ratio was 2.55, indicating that the company turned over its accounts payable approximately 2.55 times during the year. This ratio decreased slightly to 2.48 in 2021 but then increased to 2.74 in 2022. However, by 2024, the payables turnover ratio dropped significantly to 1.78.

A higher payables turnover ratio generally indicates that the company is managing its accounts payable more efficiently, as it is able to pay off suppliers more frequently. On the other hand, a decreasing ratio could imply that the company is taking longer to pay its suppliers, which may have implications for supplier relationships and cash flow management.

Overall, the trend in NiSource Inc's payables turnover ratio suggests some variability in how the company manages its accounts payable over the years, which could be influenced by changes in its payment terms, supplier relationships, or operational efficiency. Monitoring and analyzing this ratio can provide insights into the company's liquidity, ability to manage working capital, and vendor management practices.