Premier Inc (PINC)
Payables 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 |
| Payables | US$ in thousands | 60,361 | 54,375 | 44,631 | 85,413 | 54,841 |
| Payables turnover | 7.59 | 8.09 | 12.28 | 10.35 | 7.89 |
June 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $458,349K ÷ $60,361K
= 7.59
Premier Inc's payables turnover ratio has shown some fluctuation over the past five years. The ratio was highest in Jun 30, 2022 at 12.28 times, indicating that the company paid off its suppliers' invoices approximately 12 times during that period. This may suggest that the company was managing its payables efficiently by paying off its obligations quickly.
However, in Jun 30, 2024, Premier Inc's payables turnover ratio decreased to 7.59 times, which may indicate that the company took longer to pay off its suppliers' invoices compared to the previous year. This could be a sign of potential liquidity issues or a change in payment terms with suppliers.
It is important for Premier Inc to monitor its payables turnover ratio consistently and analyze the reasons behind any fluctuations. A declining ratio may signal inefficiencies in managing payables, while a consistently low ratio could indicate a potential strain on cash flow. Additionally, comparing the company's payables turnover ratio with industry benchmarks can provide further insights into its performance in managing its payables effectively.
Peer comparison
Jun 30, 2024