Premier Inc (PINC)
Fixed asset turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,346,360 | 1,336,100 | 1,432,900 | 1,721,150 | 1,299,590 |
| Property, plant and equipment | US$ in thousands | 205,711 | 212,308 | 213,379 | 224,271 | 206,728 |
| Fixed asset turnover | 6.54 | 6.29 | 6.72 | 7.67 | 6.29 |
June 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,346,360K ÷ $205,711K
= 6.54
Premier Inc's fixed asset turnover ratio has shown some fluctuations over the past five years. The company's fixed asset turnover was 6.29 in both 2020 and 2023, indicating that for each dollar invested in fixed assets, the company generated $6.29 and $6.72 in sales, respectively.
In 2021, the fixed asset turnover ratio increased to 7.67, suggesting that Premier Inc efficiently utilized its fixed assets to generate sales. However, the ratio decreased to 6.54 in 2024, indicating a decrease in the efficiency of using fixed assets to generate revenue compared to the previous year.
Overall, the trend in Premier Inc's fixed asset turnover ratio shows some variability, with fluctuations in performance from year to year. Further analysis and comparison with industry benchmarks may help provide deeper insights into the company's asset utilization efficiency.
Peer comparison
Jun 30, 2024