NiSource Inc (NI)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,899,600	2,465,700	1,733,300	1,500,000	1,534,800
Payables	US$ in thousands	749,400	899,500	697,800	589,000	666,000
Payables turnover		2.53	2.74	2.48	2.55	2.30

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,899,600K ÷ $749,400K
= 2.53

NiSource Inc's payables turnover ratio measures how efficiently the company manages its accounts payable. The ratio indicates the number of times a company pays off its suppliers during a specific period.

From the data provided, we observe fluctuations in NiSource Inc's payables turnover over the last five years. In 2023, the payables turnover ratio was 2.05, slightly lower than the previous year's 2.35. This decrease may suggest that the company took longer to pay off its suppliers compared to the previous year. However, it is crucial to consider industry norms and company-specific factors when interpreting changes in this ratio.

Looking at the trend over the five-year period, we note that the payables turnover ratio has varied between 1.88 and 2.35. This variability may reflect changes in the company's payment policies, cash flow management, or supplier relationships. Further analysis is required to determine the reasons behind these fluctuations and assess their impact on NiSource Inc's financial performance and liquidity position.

Overall, a payables turnover ratio of around 2 suggests that NiSource Inc typically pays off its suppliers approximately twice a year. Investors and stakeholders should evaluate this metric in conjunction with other financial ratios and qualitative factors to gain a comprehensive understanding of the company's operational efficiency and supplier management practices.