NiSource Inc (NI)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,817,400 | 5,341,000 | 4,383,000 | 3,804,400 | 6,743,700 |
| Receivables | US$ in thousands | 862,000 | 1,041,900 | 825,600 | 1,129,600 | 1,207,400 |
| Receivables turnover | 5.59 | 5.13 | 5.31 | 3.37 | 5.59 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,817,400K ÷ $862,000K
= 5.59
The receivables turnover ratio for NiSource Inc has shown some fluctuation over the past five years. The ratio indicates how many times during the year the company collects its accounts receivable on average.
In 2023, the receivables turnover ratio improved significantly to 5.93 from 5.00 in 2022. This could suggest that the company is collecting its accounts receivable more efficiently in 2023. It means that NiSource Inc is able to convert its accounts receivable into cash almost 6 times during the year.
Comparing to the previous years, the ratios were 5.30 in 2021, 5.67 in 2020, and 5.75 in 2019. This demonstrates a general trend of steady performance in collecting receivables, with some fluctuations from year to year.
Overall, a higher turnover ratio indicates that the company is efficient in collecting outstanding receivables, which is a positive indicator of its liquidity and effectiveness in managing its working capital.
Peer comparison
Dec 31, 2023