NiSource Inc (NI)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 5.59 | 9.27 | 8.85 | 5.89 | 5.13 | 8.59 | 6.87 | 4.90 | 5.31 | 7.26 | 6.68 | 4.71 | 3.37 | 10.11 | 9.71 | 7.47 | 4.65 | 10.71 | 6.59 | 5.07 |
| 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 |
| Working capital turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Inventory turnover for NiSource Inc has been fluctuating over the past 8 quarters, ranging from a low of 2.37 to a high of 6.16. The trend shows an increasing turnover rate, indicating that the company is managing its inventory more efficiently in recent quarters.
Receivables turnover has also varied, with a low of 4.93 and a high of 9.53. The generally increasing trend suggests that NiSource Inc is collecting its receivables faster, which is a positive sign for cash flow management.
Payables turnover has been relatively stable, with a range of 2.35 to 3.38. This indicates that the company is paying its suppliers consistently over the quarters.
Working capital turnover data is not available for analysis, but it would have provided insights into how effectively NiSource Inc is utilizing its working capital to support its operations.
Overall, the trend analysis of activity ratios for NiSource Inc suggests improvements in inventory and receivables management, while also maintaining stable payables turnover.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 95.75 | 87.07 | 70.65 | 54.69 | 111.30 | 130.98 | 84.60 | 48.85 | 104.49 | 148.88 | 105.79 | 74.63 | 122.37 | 91.61 | 75.02 | 65.59 | 101.00 | 100.35 | 70.16 | 45.85 |
| Days of sales outstanding (DSO) | days | 65.31 | 39.39 | 41.25 | 61.99 | 71.20 | 42.51 | 53.14 | 74.47 | 68.75 | 50.27 | 54.61 | 77.44 | 108.38 | 36.10 | 37.57 | 48.89 | 78.51 | 34.09 | 55.35 | 72.05 |
| Number of days of payables | days | 142.60 | 104.23 | 109.70 | 93.33 | 133.15 | 109.11 | 111.91 | 116.66 | 146.20 | 153.87 | 153.58 | 168.21 | 179.69 | 94.80 | 96.84 | 130.57 | 158.39 | 110.68 | 121.61 | 143.52 |
Based on the provided data, we can see a fluctuation in NiSource Inc's activity ratios over the past eight quarters.
1. Days of Inventory on Hand (DOH):
- In Q4 2023, NiSource had 119.79 days of inventory on hand, which is an increase from the previous quarter and a significant decrease compared to Q4 2022. This suggests that the company is holding inventory for a longer period in Q4 2023.
2. Days of Sales Outstanding (DSO):
- The DSO for Q4 2023 was 61.53 days, which is an increase from the previous quarter but lower than Q4 2022. This may indicate that NiSource is taking longer to collect its accounts receivable from customers.
3. Number of Days of Payables:
- NiSource's number of days of payables increased in Q4 2023 to 178.39 days, which is higher than the preceding quarter and is also elevated compared to the same quarter the previous year. This implies that the company is taking longer to pay its suppliers.
Overall, the trends in the activity ratios suggest that NiSource Inc may be experiencing some challenges related to managing its inventory, accounts receivable collection, and payables. Investors and analysts should closely monitor these ratios to assess the company's operational efficiency and liquidity position.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 0.22 | 0.24 | 0.25 | 0.27 | 0.27 | 0.27 | 0.27 | 0.26 | 0.25 | 0.22 | 0.22 | 0.22 | 0.23 | 0.33 | 0.34 | 0.34 | 0.33 | 0.35 | 0.35 | 79.21 |
| Total asset turnover | 0.16 | 0.19 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.19 | 0.18 | 0.17 | 0.17 | 0.17 | 0.17 | 0.23 | 0.24 | 0.24 | 0.25 | 0.26 | 0.26 | 0.26 |
NiSource Inc's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide insights into how efficiently the company is utilizing its assets to generate revenue.
Fixed asset turnover, which measures the efficiency of a company's use of fixed assets to generate sales, has been relatively stable over the past eight quarters, ranging from 0.25 to 0.29. A fixed asset turnover of less than 1 indicates that NiSource Inc is not generating a high level of sales relative to its fixed assets, which could suggest underutilization or inefficiency in asset management.
Total asset turnover, on the other hand, reflects the company's ability to generate sales from all its assets. NiSource Inc's total asset turnover has also been relatively consistent, hovering between 0.18 and 0.22 over the same period. A total asset turnover of less than 1 indicates that the company is not generating significant sales compared to its total assets.
Overall, the trend in both the fixed asset turnover and total asset turnover ratios for NiSource Inc shows a moderate level of efficiency in asset utilization. However, the company may benefit from analyzing the factors contributing to the relatively low turnover ratios to identify areas for improvement in asset management and revenue generation.