NiSource Inc (NI)

Liquidity 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
Current ratio	0.85	0.41	0.45	0.60	0.55	0.57	0.63	0.72	0.70	0.65	0.81	0.71	0.73	0.82	0.89	0.78	0.49	0.41	0.41	0.48
Quick ratio	0.59	0.14	0.18	0.30	0.26	0.20	0.31	0.41	0.39	0.25	0.38	0.39	0.55	0.17	0.22	0.22	0.36	0.17	0.23	0.32
Cash ratio	0.43	0.01	0.04	0.07	0.04	0.05	0.08	0.04	0.09	0.02	0.05	0.04	0.05	0.02	0.05	0.05	0.04	0.01	0.01	0.04

NiSource Inc's liquidity ratios have fluctuated over the past eight quarters. The current ratio, which measures the company's ability to pay off short-term liabilities with its current assets, has shown a declining trend from 0.85 in Q4 2023 to 0.60 in Q1 2023. Similarly, the quick ratio, which excludes inventory from current assets, has also exhibited a decreasing pattern from 0.75 in Q4 2023 to 0.49 in Q1 2023. The cash ratio, indicating the extent to which cash and cash equivalents cover current liabilities, has fluctuated but generally remained low, ranging from 0.13 to 0.58.

Overall, the liquidity ratios of NiSource Inc suggest a potential challenge in meeting short-term obligations, particularly in Q1 and Q4 of 2023. The company may need to closely monitor its liquidity position and take appropriate measures to ensure it has sufficient resources to meet its upcoming financial obligations.

Additional liquidity measure

		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
Cash conversion cycle	days	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	21.13	23.75	3.91	-25.62

The cash conversion cycle of NiSource Inc has shown significant variability over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 2.92 days, indicating that it took approximately 2.92 days for NiSource to convert its investments in inventory and other resources into cash from sales. This represents a substantial improvement compared to the previous quarter where the cycle was 17.67 days.

In Q3 2023, the cash conversion cycle was negative at -5.47 days, suggesting that NiSource was able to collect cash from customers before paying its suppliers and converting inventory into sales, which is a favorable position. However, this trend was reversed in Q2 2023 when the cycle increased to 17.58 days, indicating a potential challenge in managing working capital efficiently.

Looking at the historical data, the cash conversion cycle has fluctuated significantly, with peaks in Q3 2022 (76.35 days) and Q4 2022 (47.47 days), and troughs in Q1 2022 (-8.20 days) and Q2 2023 (-5.47 days). These fluctuations suggest varying efficiency in managing inventory, receivables, and payables, which can impact the company's liquidity and financial health.

Overall, NiSource's cash conversion cycle has displayed volatility over the quarters, highlighting the importance of closely monitoring working capital management to ensure optimal operational efficiency and cash flow generation.