Premier Inc (PINC)
Receivables turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,012,650 | 1,346,360 | 1,336,100 | 1,432,900 | 1,721,150 |
| Receivables | US$ in thousands | 417,429 | 462,525 | 414,514 | 374,190 | 408,730 |
| Receivables turnover | 2.43 | 2.91 | 3.22 | 3.83 | 4.21 |
June 30, 2025 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,012,650K ÷ $417,429K
= 2.43
The receivables turnover ratio for Premier Inc. demonstrates a declining trend over the four-year period from June 30, 2021, to June 30, 2025. Specifically, the ratio decreased from 4.21 in 2021 to 3.83 in 2022, indicating a slight reduction in the efficiency with which the company collects its accounts receivable. This downward movement continued more markedly, with the ratio falling to 3.22 in 2023, then further declining to 2.91 in 2024, and reaching 2.43 in 2025.
This decreasing pattern suggests that Premier Inc. has been taking progressively longer to collect its receivables over these years. A lower receivables turnover ratio generally indicates elongated collection periods, which could be attributed to several factors such as changes in credit policies, customer payment behaviors, or broader economic conditions impacting the company's collections process.
In summary, the consistent decline in Premier Inc.'s receivables turnover ratio over this period reflects a trend toward longer receivable collection cycles, potentially impacting the company's cash flow position and operational efficiency if the trend persists.
Peer comparison
Jun 30, 2025