Premier Inc (PINC)
Number of days of payables
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 7.59 | 6.71 | 7.98 | 8.98 | 8.09 | 8.39 | 7.83 | 8.47 | 12.28 | 12.90 | 11.57 | 9.88 | 10.35 | 7.58 | 6.41 | 7.24 | 7.89 | 6.31 | 7.06 | 6.34 | |
| Number of days of payables | days | 48.07 | 54.41 | 45.77 | 40.63 | 45.13 | 43.52 | 46.63 | 43.09 | 29.73 | 28.30 | 31.55 | 36.93 | 35.27 | 48.16 | 56.97 | 50.40 | 46.25 | 57.88 | 51.74 | 57.61 |
June 30, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 7.59
= 48.07
Premier Inc's number of days of payables has fluctuated over the past few quarters. The trend shows a general decrease in the number of days it takes for the company to pay its trade payables. In the most recent quarter, the number of days of payables stood at 48.07 days, which was slightly lower compared to the previous quarter's 54.41 days. This indicates that Premier Inc is managing its payables more efficiently and is able to settle its trade payables at a faster pace.
Looking further back, there was a notable increase in the number of days of payables in the first few quarters of the data series, reaching a peak of 57.88 days in the third quarter of 2019. However, since then, there has been a downward trend in the number of days of payables, with occasional fluctuations.
Overall, the decreasing trend in the number of days of payables suggests that Premier Inc may have improved its working capital management and vendor payment processes. A lower number of days of payables typically indicates better liquidity management and stronger supplier relationships. It's important to monitor this ratio over time to assess the company's ability to manage its trade payables effectively.
Peer comparison
Jun 30, 2024