NiSource Inc (NI)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.95 | 3.83 | 4.03 | 4.90 | 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 |
| Receivables turnover | 9.49 | 8.04 | 7.30 | 5.39 | 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 |
| Payables turnover | 1.78 | 2.44 | 2.58 | 2.59 | 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 |
| Working capital turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
NiSource Inc's activity ratios provide insights into how efficiently the company manages its inventory, receivables, payables, and working capital. Here is a detailed analysis based on the provided data:
1. Inventory Turnover: The inventory turnover ratio measures how many times a company sells its average inventory during a period. NiSource's inventory turnover fluctuated over the years, ranging from a low of 2.79 in September 2022 to a high of 7.47 in March 2022. The peak in March 2022 indicates that the company was able to sell its inventory more rapidly during that period.
2. Receivables Turnover: The receivables turnover ratio reflects how efficiently a company collects payments from its customers. NiSource's receivables turnover varied, with values ranging from 3.37 in December 2020 to 9.49 in December 2024. A higher turnover ratio suggests that the company was effective in collecting receivables, especially evident in December 2024.
3. Payables Turnover: The payables turnover ratio indicates how quickly a company pays its suppliers. NiSource's payables turnover ranged from 1.78 in December 2024 to 3.91 in March 2023. A lower turnover ratio indicates a longer time taken to pay suppliers, which may have implications for cash flow management and relationships with suppliers.
4. Working Capital Turnover: Unfortunately, there is no data provided for NiSource's working capital turnover, which could have revealed insights into how efficiently the company is utilizing its working capital to generate sales revenue.
In conclusion, analyzing NiSource Inc's activity ratios provides valuable information about its operational efficiency in managing inventory, receivables, and payables. The company's ability to efficiently turnover inventory and collect receivables can contribute to improved cash flow and profitability, while managing payables effectively is crucial for maintaining positive supplier relationships.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 92.44 | 95.31 | 90.56 | 74.42 | 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 |
| Days of sales outstanding (DSO) | days | 38.46 | 45.37 | 50.03 | 67.72 | 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 |
| Number of days of payables | days | 205.06 | 149.70 | 141.71 | 140.85 | 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 |
NiSource Inc's activity ratios indicate the efficiency of its operations in managing inventory, receivables, and payables.
1. Days of Inventory on Hand (DOH):
- NiSource's DOH has shown fluctuating trends over the periods analyzed, ranging from around 48 to 148 days. A lower DOH implies faster inventory turnover, indicating efficient management of inventory levels. The company saw a significant increase in DOH in September 2021, followed by a decrease in March 2022.
2. Days of Sales Outstanding (DSO):
- DSO measures how quickly the company collects payments from its customers. NiSource's DSO ranged from approximately 36 to 108 days. A lower DSO indicates better liquidity and effective credit management. The company experienced a spike in DSO in December 2020, which improved gradually over the subsequent periods.
3. Number of Days of Payables:
- This metric reflects how long it takes for the company to pay its suppliers. NiSource's payables days ranged from around 94 to 205 days. A higher number of days of payables may indicate a favorable payment term with suppliers. The company had an increase in payables days in December 2024 compared to the earlier periods.
Overall, analyzing these activity ratios provides insights into NiSource's operational efficiency and effectiveness in managing its working capital components. It is essential for stakeholders to monitor these ratios to track the company's performance in inventory management, accounts receivable collection, and accounts payable management.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 0.36 | — | — | — | 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 |
| Total asset turnover | 0.29 | 0.15 | 0.15 | 0.16 | 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 |
The fixed asset turnover ratio for NiSource Inc has shown a downward trend from March 31, 2020 to December 31, 2023, reflecting a decrease in the company's ability to generate sales from its fixed assets. However, there was a slight increase in the ratio from December 31, 2023 to December 31, 2024.
On the other hand, the total asset turnover ratio also exhibited a declining pattern from March 31, 2020 to December 31, 2023, indicating a reduction in the efficiency of NiSource Inc in utilizing its total assets to generate sales. The ratio decreased consistently over this period.
Overall, the long-term activity ratios suggest that NiSource Inc faced challenges in effectively utilizing both its fixed assets and total assets to generate revenues during the period analyzed.