NiSource Inc (NI)

Cash conversion cycle

		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
Cash conversion cycle	days	-74.15	-9.02	-1.12	1.28	18.46	22.23	2.21	23.35	49.35	64.38	25.83	6.67	27.04	45.28	6.81	-16.13	51.05	32.91	15.75	-16.08

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 92.44 + 38.46 – 205.06
= -74.15

The cash conversion cycle of NiSource Inc has shown fluctuations over the period under review.

Initially, the company had a negative cash conversion cycle, indicating that it was able to convert its inventory and accounts receivable to cash quickly. However, this trend reversed as the company experienced a significant increase in its cash conversion cycle, reaching its peak at 64.38 days on September 30, 2022.

Subsequently, NiSource Inc managed to improve its cash conversion cycle, bringing it down to 1.28 days by March 31, 2024. This improvement can be attributed to better inventory and receivables management practices.

Interestingly, in the following quarters, NiSource Inc was able to maintain a negative cash conversion cycle, indicating a efficient management of working capital in converting inventories to cash and collecting receivables.

Overall, fluctuations in the cash conversion cycle of NiSource Inc reflect changes in the company's efficiency in managing its working capital and converting assets into cash.