Premier Inc (PINC)
Days of inventory on hand (DOH)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | — | 5.74 | 5.72 | 4.58 | 5.01 | |
| DOH | days | — | 63.55 | 63.85 | 79.72 | 72.84 |
June 30, 2025 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —
The analysis of Premier Inc’s days of inventory on hand (DOH) over the specified period indicates notable fluctuations and trends. As of June 30, 2021, the DOH was approximately 72.84 days, reflecting the number of days inventory remained on hand before being sold or utilized. This metric increased to approximately 79.72 days by June 30, 2022, suggesting a relative slowdown in inventory turnover or an increase in inventory levels, which could be attributable to strategic inventory buildup, supply chain adjustments, or changes in demand.
However, a subsequent decrease in DOH is observed by June 30, 2023, with the figure declining to approximately 63.85 days. This reduction indicates an improvement in inventory efficiency, implying that inventory was being sold or used more quickly, potentially driven by better inventory management, operational efficiencies, or shifts in demand patterns. The comparative decline from the 2022 peak to 2023 suggests a positive movement towards optimizing inventory levels.
The stability in the DOH is maintained into June 30, 2024, with a marginal decrease to approximately 63.55 days, indicating sustained inventory management efficiency. The data for June 30, 2025, is unavailable or unspecified, leaving the trend incomplete beyond the 2024 fiscal year.
Overall, the data reflect a period of increased inventory holding in 2022, followed by a notable decrease and stabilization through 2023 and 2024. The trend towards lower DOH in recent years suggests an enhancement in inventory turnover, which is generally viewed as a positive indicator of operational efficiency. However, the absence of data beyond 2024 precludes definitive conclusions about long-term inventory management strategies or potential future developments.