Premier Inc (PINC)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,346,361 | 1,336,457 | 1,316,093 | 1,340,974 | 1,336,095 | 1,336,437 | 1,362,038 | 1,381,627 | 1,432,901 | 1,573,710 | 1,695,800 | 1,739,412 | 1,721,152 | 1,582,390 | 1,447,290 | 1,344,069 | 1,299,592 | 1,273,073 | 1,239,463 | 1,227,446 |
| Property, plant and equipment | US$ in thousands | 205,711 | 206,363 | 218,050 | 210,519 | 212,308 | 206,687 | 207,045 | 208,862 | 213,379 | 222,583 | 225,470 | 226,349 | 224,271 | 223,689 | 220,569 | 214,166 | 206,728 | 203,512 | 199,970 | 202,564 |
| Fixed asset turnover | 6.54 | 6.48 | 6.04 | 6.37 | 6.29 | 6.47 | 6.58 | 6.62 | 6.72 | 7.07 | 7.52 | 7.68 | 7.67 | 7.07 | 6.56 | 6.28 | 6.29 | 6.26 | 6.20 | 6.06 |
June 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,346,361K ÷ $205,711K
= 6.54
Premier Inc's fixed asset turnover ratio has exhibited slight fluctuations over the past few quarters, but generally shows a consistent trend of being relatively high. The ratio has ranged from 6.04 to 7.68 over the last eight quarters, with an average of approximately 6.64. This indicates that Premier Inc generates $6.64 in sales for every $1 invested in fixed assets on average.
A high fixed asset turnover ratio is generally positive as it suggests that the company efficiently utilizes its fixed assets to generate sales. Premier Inc's consistently high fixed asset turnover ratio indicates effective asset management and operational efficiency. However, any substantial deviations from the historical trend could warrant further investigation to understand the factors driving the changes in the ratio.
Peer comparison
Jun 30, 2024