NiSource Inc (NI)
Total asset 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 |
| Total assets | US$ in thousands | 31,077,200 | 26,736,600 | 24,156,900 | 22,040,500 | 22,659,800 |
| Total asset turnover | 0.16 | 0.20 | 0.18 | 0.17 | 0.30 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,817,400K ÷ $31,077,200K
= 0.16
NiSource Inc's total asset turnover ratio has shown a declining trend over the past five years, decreasing from 0.23 in 2019 to 0.18 in 2023. This indicates that the company generated $0.18 in revenue for every dollar of assets in 2023, compared to $0.23 in 2019. A lower total asset turnover ratio may suggest that the company is not effectively utilizing its assets to generate revenue.
The declining trend in total asset turnover could be a cause of concern for investors and stakeholders as it indicates a decrease in the efficiency of NiSource Inc in generating sales from its assets. Management should focus on improving asset utilization and operational efficiency to increase total asset turnover ratio, which could lead to higher profitability and shareholder value in the future.
Peer comparison
Dec 31, 2023