NiSource Inc (NI)

Payables 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
Payables	US$ in thousands	749,400	648,200	718,400	642,200	899,500	666,500	650,300	628,500	697,800	487,200	480,400	554,900	589,000	410,300	402,500	505,600	666,000	494,900	552,200	675,200
Payables turnover		2.56	3.50	3.33	3.91	2.74	3.35	3.26	3.13	2.50	2.37	2.38	2.17	2.03	3.85	3.77	2.80	2.30	3.30	3.00	2.54

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,918,200K ÷ $749,400K
= 2.56

The payables turnover ratio for NiSource Inc fluctuated over the past eight quarters, ranging from 2.05 to 3.38. The ratio indicates how efficiently the company is managing its accounts payable by measuring the number of times a company pays off its average accounts payable balance during a period.

In Q1 2023, the payables turnover ratio was 3.38, indicating a higher speed of paying off its suppliers compared to Q4 2023 when the ratio was 2.05. This suggests that in Q1 2023, NiSource Inc was more efficient in managing its accounts payable and had a shorter time to pay off its creditors.

However, the ratios for Q2 2023 and Q3 2023 were relatively stable at 2.84 and 2.91, respectively, before declining to 2.05 in Q4 2023. These fluctuations in the ratio may be influenced by factors such as changes in payment terms with suppliers, changes in the company's purchasing patterns, or variations in the timing of payments.

Overall, the trend of the payables turnover ratio for NiSource Inc shows some variability but generally indicates that the company is effectively managing its accounts payable and maintaining a reasonable balance between paying suppliers promptly and optimizing its cash flow.