Premier Inc (PINC)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 2.43 | 2.61 | 2.52 | 2.77 | 2.79 | 2.81 | 2.90 | 3.24 | 3.22 | 3.29 | 3.36 | 3.61 | 3.83 | 4.13 | 3.97 | 4.23 | 4.21 | 3.53 | 3.57 | 3.57 | |
| DSO | days | 150.46 | 139.90 | 144.68 | 131.57 | 130.81 | 129.79 | 125.92 | 112.60 | 113.24 | 110.92 | 108.54 | 101.13 | 95.32 | 88.44 | 91.91 | 86.28 | 86.68 | 103.30 | 102.28 | 102.35 |
June 30, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.43
= 150.46
The analysis of Premier Inc.'s days of sales outstanding (DSO) over the period from September 2020 to June 2025 reveals a consistent upward trend indicative of a lengthening collection period.
Initially, at approximately 102.35 days in September 2020, the DSO demonstrated relative stability, fluctuating marginally around the low 102-day range through the end of 2021. During this period, the DSO remained relatively stable with minor fluctuations, such as a slight decrease to approximately 86.68 days in June 2021, suggesting improved collection efficiency during that quarter, followed by stabilization around the mid-80s to early 90s range.
However, starting in late 2021 and into 2022, there was a gradual but persistent increase in DSO. By December 2021, it rose to approximately 91.91 days, and continued to trend upward, reaching 95.32 days in June 2022, and 101.13 days in September 2022. This indicates a trend towards lengthening the average time to collect receivables.
The upward trajectory accelerated through 2023, with DSO increasing to 108.54 days in December 2022, and further escalating to approximately 110.92 days by March 2023. The trend persisted into 2024, with DSO reaching around 131.57 days by September 2024, and peaking at 144.68 days by December 2024. The significant rise reflects a substantial elongation in collection periods over this period.
In the first half of 2025, the DSO sustained elevated levels, with values of 139.90 days in March 2025 and 150.46 days in June 2025, indicating progressively worsening receivables collection efficiency.
Overall, the data illustrates a clear pattern of declining collection performance, culminating in DSO levels that are substantially higher than those observed in early 2020. This trend suggests increasing challenges in receivables management, which could reflect broader issues such as changes in credit policies, customer payment behaviors, or external market conditions affecting the receivables collection cycle.