Premier Inc (PINC)
Payables turnover
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 278,787 | 329,243 | 395,573 | 439,977 | 480,423 | 464,046 | 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 |
| Payables | US$ in thousands | 19,619 | 19,650 | 21,880 | 24,655 | 60,361 | 67,341 | 54,252 | 48,545 | 54,375 | 53,486 | 61,422 | 59,803 | 44,631 | 53,720 | 70,510 | 89,533 | 85,413 | 100,348 | 94,523 | 68,213 |
| Payables turnover | 14.21 | 16.76 | 18.08 | 17.85 | 7.96 | 6.89 | 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 |
June 30, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $278,787K ÷ $19,619K
= 14.21
The payables turnover ratio for Premier Inc exhibits notable fluctuations over the analyzed period from September 2020 through June 2025. In September 2020, the ratio commenced at 7.24, indicating that the company settled its accounts payable approximately 7.24 times during that fiscal quarter. This ratio experienced a slight decline toward the end of 2020, reaching 6.41 in December 2020.
Throughout 2021, the ratio generally increased, suggesting an acceleration in the company's payment frequency to suppliers. It rose steadily from 7.58 in March 2021 to a peak of 11.57 in December 2021. The upward trend continued into the first quarter of 2022, reaching 12.90, which indicates a faster turnover in accounts payable.
During 2022, the ratio started to decline, dropping from 12.28 in June 2022 to 8.47 in September 2022 and further to 7.83 in December 2022. The subsequent quarters through the first half of 2023 show some stabilization, with ratios around 8, specifically 8.39 in March 2023 and 8.09 in June 2023.
A significant shift occurs in the second half of 2023, where the ratio again rises sharply to 8.98 in September 2023, then to 7.98 in December 2023. The trend accelerates further into 2024, with ratios reaching 6.89 in March, decreasing slightly, but then markedly increasing to 17.85 in September 2024 and slightly up again to 18.08 in December 2024. This sharp increase indicates a substantial increase in the frequency of payments or perhaps a change in supplier terms or payment policy.
In the first half of 2025, the ratio shows a declining trend from 16.76 in March to 14.21 in June, suggesting a moderation in the speed at which accounts payable are being settled compared to the peak observed at the end of 2024.
Overall, the payables turnover ratio for Premier Inc has demonstrated periods of both acceleration and deceleration, reflecting potential shifts in payment strategies, supplier terms, or operational cash management policies. The notable spikes in late 2024 could indicate either faster payment cycles or changes in accounting or supplier relationships, while the earlier fluctuations reflect typical industry variability.
Peer comparison
Jun 30, 2025