Premier Inc (PINC)
Days of sales outstanding (DSO)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 2.43 | 2.91 | 3.22 | 3.83 | 4.21 | |
| DSO | days | 150.46 | 125.39 | 113.24 | 95.32 | 86.68 |
June 30, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.43
= 150.46
The Days of Sales Outstanding (DSO) for Premier Inc. demonstrates a consistent upward trend over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the DSO increased from 86.68 days in 2021 to 95.32 days in 2022, representing an approximate 9.9% rise. This upward movement continued in 2023, reaching 113.24 days, marking an increase of around 18.9% year-over-year. The trend persisted into 2024, with the DSO further escalating to 125.39 days, an increase of roughly 10.7% from the prior year. The most recent data point indicates a significant rise by June 30, 2025, where the DSO reached 150.46 days, approximately a 20% increase from the previous year.
This progressive increase over the period signifies that Premier Inc. is taking longer to collect receivables from its customers. An expanding DSO may suggest deteriorating collection efficiency, changes in credit policy, or shifts in customer payment behavior. It warrants further analysis to determine whether this trend aligns with industry norms or reflects potential liquidity or operational challenges. Interpreting these figures within the broader context of Premier Inc.'s credit management practices, industry environment, and overall financial health is essential to understanding the implications of the rising DSO trend.