Premier Inc (PINC)
Payables turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 269,288 | 458,349 | 439,806 | 547,862 | 883,818 |
| Payables | US$ in thousands | 19,619 | 60,361 | 54,375 | 44,631 | 85,413 |
| Payables turnover | 13.73 | 7.59 | 8.09 | 12.28 | 10.35 |
June 30, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $269,288K ÷ $19,619K
= 13.73
The payables turnover ratio for Premier Inc demonstrates notable fluctuations over the period from June 30, 2021, to June 30, 2025. Initially, the ratio increased from 10.35 in 2021 to a peak of 12.28 in 2022, indicating that the company was paying its suppliers more frequently or efficiently during this time frame. However, subsequent years show a decline in the ratio, with values dropping to 8.09 in 2023 and further decreasing to 7.59 in 2024. This downward trend suggests a lengthening of the company’s average payables period, reflecting potentially more extended credit terms or slower payment practices. Interestingly, in 2025, the ratio rebounds sharply to 13.73, exceeding previous levels, which could imply a strategic shift towards more prompt payments or improved liquidity enabling faster settlement of obligations. Overall, the variability in the payables turnover ratio indicates evolving payable management strategies and financial flexibility within Premier Inc over the period analyzed.
Peer comparison
Jun 30, 2025