Premier Inc (PINC)
Inventory turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 458,349 | 439,806 | 547,862 | 883,818 | 432,791 |
| Inventory | US$ in thousands | 79,799 | 76,932 | 119,652 | 176,376 | 70,997 |
| Inventory turnover | 5.74 | 5.72 | 4.58 | 5.01 | 6.10 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $458,349K ÷ $79,799K
= 5.74
Premier Inc's inventory turnover has fluctuated over the past five years. The inventory turnover ratio for the most recent year, ending June 30, 2024, was 5.74, showing a slight increase from the previous year. This indicates that the company's inventory was sold and replaced approximately 5.74 times during the year.
The trend over the five-year period shows some variation, with the highest ratio of 6.10 in 2020 and the lowest ratio of 4.58 in 2022. A higher inventory turnover ratio generally indicates more efficient management of inventory, as goods are moving off the shelves quickly.
Overall, Premier Inc's inventory turnover has been relatively stable, with minor fluctuations. It is important for the company to continue monitoring and managing its inventory effectively to ensure optimal performance and profitability.
Peer comparison
Jun 30, 2024