Premier Inc (PINC)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	10.63	11.03	10.76	13.13	11.59	11.59	11.26	13.13	12.56	12.53	12.30	12.50	12.17	8.39	8.70	10.20	9.62	9.10	7.43	7.78
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
Working capital turnover	926.61	—	4.44	5.78	—	—	—	—	—	—	332.31	22.98	26.27	43.54	17.77	26.89	10.63	19.23	9.95	7.39

Inventory turnover for Premier Inc has shown a fluctuating trend over the past few quarters, ranging from 3.38 to 8.10. The ratio indicates the efficiency of the company in managing its inventory and converting it into sales. A high turnover rate suggests that the company is effectively selling its inventory, while a low rate could signal issues such as overstocking or slow sales.

Receivables turnover has also varied over the quarters, with values between 7.43 and 13.13. This ratio reflects how efficiently the company collects payments from its credit customers. A higher turnover indicates that customers are paying their bills quickly, which can improve cash flow and reduce bad debt risks.

Payables turnover has shown some fluctuations as well, ranging from 6.31 to 12.90. This ratio measures how quickly the company pays its suppliers. A higher turnover may indicate that the company is taking longer to pay its suppliers, while a lower turnover could suggest a more prompt payment strategy.

The working capital turnover for Premier Inc has been volatile, with values ranging from 4.44 to 926.61. This ratio reflects how effectively the company is utilizing its working capital to generate sales revenue. A higher ratio indicates efficient use of working capital, while a lower ratio may suggest inefficiencies in capital utilization.

Overall, Premier Inc's activity ratios show some variability over the quarters, which could be influenced by factors such as seasonal variations, changes in business operations, or shifts in market demand. It is essential for the company to monitor these ratios consistently to ensure optimal efficiency and performance.

Average number of days

		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
Days of inventory on hand (DOH)	days	63.55	62.85	61.39	58.48	63.85	76.84	88.39	89.26	79.72	68.62	66.41	69.72	72.84	108.09	107.50	105.89	59.88	45.08	51.20	52.56
Days of sales outstanding (DSO)	days	34.35	33.09	33.92	27.80	31.50	31.49	32.40	27.80	29.07	29.14	29.68	29.19	30.00	43.48	41.97	35.79	37.93	40.11	49.15	46.93
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

Premier Inc's Days of Inventory on Hand (DOH) has fluctuated over the past few quarters, ranging from 45.08 days to 108.09 days. The increasing trend in DOH indicates that the company is taking longer to sell its inventory, which may tie up capital and potentially lead to obsolescence or higher carrying costs.

The Days of Sales Outstanding (DSO) for Premier Inc has seen slight variations, with a range of 27.80 days to 49.15 days. A lower DSO implies that the company is collecting receivables more efficiently, while a higher DSO could indicate potential issues with collecting payments promptly from customers.

In terms of the number of days of payables, Premier Inc has experienced fluctuations from 28.30 days to 57.88 days over the analyzed periods. A higher number of days of payables implies that the company is taking longer to pay its suppliers, possibly improving cash flow but potentially straining relationships with vendors.

Overall, the activity ratios suggest that Premier Inc may need to focus on optimizing inventory management, enhancing accounts receivable collection processes, and maintaining a balanced approach to managing payables to improve overall working capital efficiency.

Long-term

	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
Fixed asset turnover	6.54	6.48	6.04	6.37	6.29	6.47	6.58	6.62	6.72	7.07	7.52	7.68	7.67	7.07	6.56	6.28	6.29	6.26	6.20	6.06
Total asset turnover	0.40	0.40	0.34	0.35	0.40	0.38	0.38	0.40	0.43	0.45	0.49	0.49	0.49	0.43	0.41	0.39	0.44	0.42	0.47	0.47

Premier Inc's fixed asset turnover has exhibited a consistent trend of around 6 to 7 times over the past several quarters, indicating that the company generates a relatively high level of sales from its fixed assets. The slight fluctuations in the ratio do not signify any alarming changes in the efficiency of utilizing fixed assets to generate sales.

However, the total asset turnover ratio has shown more variability, ranging from 0.34 to 0.49 over the same period. The lower values in certain quarters suggest that Premier Inc may not be efficiently utilizing all its assets to generate sales during those periods. It is important to closely monitor and analyze the factors contributing to the fluctuations in the total asset turnover ratio to ensure optimal asset utilization.

Overall, while the fixed asset turnover for Premier Inc indicates effective utilization of fixed assets in generating sales, the varying total asset turnover ratios highlight the need for a comprehensive assessment of asset management efficiency to enhance overall operational performance.