Premier Inc (PINC)
Days of inventory on hand (DOH)
| Jun 30, 2025 | Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | 6.02 | 5.96 | 5.95 | 6.24 | 5.72 | 4.75 | 4.13 | 4.09 | 4.58 | 5.32 | 5.50 | 5.23 | 5.01 | 3.38 | 3.40 | 3.45 | |
| DOH | days | — | — | — | — | 60.63 | 61.19 | 61.39 | 58.48 | 63.85 | 76.84 | 88.39 | 89.26 | 79.72 | 68.62 | 66.41 | 69.72 | 72.84 | 108.09 | 107.50 | 105.89 |
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 reveals notable fluctuations and underlying trends. Starting from September 30, 2020, the DOH was approximately 105.89 days, indicating that inventory was kept for around 106 days on average. This figure exhibited a gradual increase through 2020 and into early 2021, reaching a peak of approximately 108.09 days as of March 31, 2021. This sustained high level suggests a relatively conservative inventory management approach during this period, with inventory turnover slower than in subsequent periods.
However, from June 30, 2021 onward, a significant downward trend began, with DOH decreasing markedly to 72.84 days by June 30, 2021. The downward trajectory continued, reaching approximately 69.72 days by September 30, 2021, and further declining to 66.41 days at the close of 2021. This reduction indicates an improvement in inventory efficiency, with Premier Inc. turning over its inventory more rapidly.
In early 2022, DOH increased slightly to 68.62 days by March 31 but then experienced a rise again, reaching 79.72 days by June 30, 2022. Nonetheless, the broader trend post-2021 appears to be one of decreasing inventory holding periods, with DOH eventually stabilizing in the 58 to 61-day range during the latter stages of 2023 and into mid-2024. Specifically, by September 30, 2023, the DOH was approximately 58.48 days, reflecting an efficient inventory management cycle comparable to industry benchmarks.
The data for subsequent periods (December 2023 through June 2024) indicates a relatively stable and low DOH, around 60 days, signifying continued improvement or maintained efficiency in inventory turnover. The absence of data beyond June 2024 precludes further trend analysis but suggests that the company maintained favorable inventory levels up to that point.
In summary, Premier Inc's DOH trend demonstrates a transition from higher inventory periods in 2020-2021 to a sustained reduction and stabilization in inventory holding times during 2022 and 2023. This shift underscores enhanced inventory management efficiency, likely contributing to better working capital utilization and potentially improved overall operational performance.