Premier Inc (PINC)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 10.63 | 11.03 | 10.76 | 13.13 | 11.59 | 11.59 | 11.26 | 13.13 | 12.56 | 12.53 | 12.30 | 12.50 | 12.17 | 8.39 | 8.70 | 10.20 | 9.62 | 9.10 | 7.43 | 7.78 | |
| DSO | days | 34.35 | 33.09 | 33.92 | 27.80 | 31.50 | 31.49 | 32.40 | 27.80 | 29.07 | 29.14 | 29.68 | 29.19 | 30.00 | 43.48 | 41.97 | 35.79 | 37.93 | 40.11 | 49.15 | 46.93 |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.63
= 34.35
Premier Inc's Days Sales Outstanding (DSO) has shown fluctuations over the past several quarters. DSO represents the average number of days it takes for a company to collect payment after making a sale. A lower DSO indicates that the company is collecting payments more quickly, which can improve cash flow availability.
In the most recent quarter ending on June 30, 2024, Premier Inc's DSO was 34.35 days, showing a slight increase from the previous quarter. However, compared to the same quarter a year ago, the DSO has increased, indicating a potential delay in collecting receivables.
Analyzing the trend over the past few quarters, Premier Inc has generally maintained DSO below 40 days, indicating efficient credit and collection processes. However, the DSO has shown some volatility, which suggests variability in customer payment behaviors or changes in the company's credit policies.
It will be important for Premier Inc to continue monitoring its DSO and working towards maintaining a consistent and low DSO to ensure efficient cash flow management and timely collection of receivables.
Peer comparison
Jun 30, 2024