Premier Inc (PINC)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 458,349 | 451,766 | 432,665 | 436,088 | 439,806 | 448,555 | 480,749 | 506,579 | 547,862 | 692,922 | 815,682 | 884,811 | 883,818 | 760,549 | 605,561 | 493,958 | 432,791 | 392,879 | 375,792 | 363,502 |
| Inventory | US$ in thousands | 79,799 | 77,795 | 72,766 | 69,868 | 76,932 | 94,431 | 116,421 | 123,881 | 119,652 | 130,275 | 148,415 | 169,019 | 176,376 | 225,231 | 178,346 | 143,305 | 70,997 | 48,522 | 52,713 | 52,344 |
| Inventory turnover | 5.74 | 5.81 | 5.95 | 6.24 | 5.72 | 4.75 | 4.13 | 4.09 | 4.58 | 5.32 | 5.50 | 5.23 | 5.01 | 3.38 | 3.40 | 3.45 | 6.10 | 8.10 | 7.13 | 6.94 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $458,349K ÷ $79,799K
= 5.74
The inventory turnover of Premier Inc has exhibited fluctuations over the periods analyzed. Inventory turnover measures how many times a company's inventory is sold and replaced over a specific period. A higher turnover ratio is generally considered more favorable as it indicates that the company is efficiently managing its inventory.
From December 2019 to March 2020, there was a significant increase in inventory turnover from 6.94 to 8.10, showing a more efficient use of inventory during that period. However, this spike was followed by a decrease in the following quarters.
The lowest inventory turnover was observed in March 2021, at 3.38, which could indicate potential issues such as overstocking or slow sales. The company then improved its inventory turnover gradually, reaching a peak of 6.24 in September 2023.
Overall, Premier Inc's inventory turnover has shown some volatility, with fluctuations in efficiency related to managing inventory levels. Further analysis of the company's operations and industry trends may be necessary to gain a deeper understanding of the factors influencing these changes.
Peer comparison
Jun 30, 2024
Jun 30, 2024