Premier Inc (PINC)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.74 | 5.81 | 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 | 6.10 | 8.10 | 7.13 | 6.94 | |
| DOH | days | 63.55 | 62.85 | 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 | 59.88 | 45.08 | 51.20 | 52.56 |
June 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.74
= 63.55
Premier Inc's Days of Inventory on Hand (DOH) has varied significantly over the past few quarters, indicating fluctuations in the management of inventory levels. The average DOH over the provided period is approximately 72.31 days, suggesting that, on average, the company holds inventory for about 72 days before it is sold.
There are noticeable spikes in DOH in some quarters, particularly in the last few periods, with DOH exceeding 100 days, which could indicate potential issues with inventory management efficiency or slow-moving inventory. However, it seems that there has been some improvement in inventory management in the most recent quarters, with DOH decreasing from 108.09 days in March 2021 to 61.39 days in December 2023.
Overall, a decreasing trend in DOH indicates that Premier Inc is carrying less inventory relative to sales, which can be a positive sign of improved efficiency and better working capital management. However, monitoring future trends in DOH will be crucial to assess the company's ongoing inventory management effectiveness and its impact on financial performance.
Peer comparison
Jun 30, 2024