NiSource Inc (NI)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	1,295,500	1,265,800	1,006,900	550,800	890,700
Total assets	US$ in thousands	31,077,200	26,736,600	24,156,900	22,040,500	22,659,800
Operating ROA		4.17%	4.73%	4.17%	2.50%	3.93%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $1,295,500K ÷ $31,077,200K
= 4.17%

NiSource Inc's operating return on assets (operating ROA) has shown a relatively stable performance over the past five years, ranging from 4.18% to 5.76%. The decreasing trend from 2019 to 2021, along with the subsequent slight increase in 2022 and 2023, indicates some fluctuations in the company's efficiency in generating operating income from its assets.

The average operating ROA over the five-year period is approximately 4.56%, suggesting that, on average, NiSource Inc is able to generate operating income equivalent to 4.56% of its total assets. It is important to note that a higher operating ROA signifies better efficiency in utilizing assets to generate profit. In this case, while the company's operating ROA is above 4% in all years, there may be room for improvement to enhance asset utilization efficiency further.

Overall, NiSource Inc's operating ROA demonstrates consistency but also highlights the importance of monitoring and potentially improving asset utilization to drive profitability effectively.