Premier Inc (PINC)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,012,647 | 1,100,058 | 1,125,542 | 1,220,021 | 1,290,631 | 1,280,727 | 1,316,093 | 1,340,974 | 1,336,095 | 1,336,437 | 1,362,038 | 1,381,627 | 1,432,901 | 1,573,710 | 1,695,800 | 1,739,412 | 1,721,152 | 1,582,390 | 1,447,290 | 1,344,069 |
| Receivables | US$ in thousands | 417,429 | 421,636 | 446,155 | 439,765 | 462,525 | 455,415 | 454,027 | 413,679 | 414,514 | 406,113 | 405,043 | 382,797 | 374,190 | 381,325 | 427,038 | 411,160 | 408,730 | 447,850 | 405,577 | 376,882 |
| Receivables turnover | 2.43 | 2.61 | 2.52 | 2.77 | 2.79 | 2.81 | 2.90 | 3.24 | 3.22 | 3.29 | 3.36 | 3.61 | 3.83 | 4.13 | 3.97 | 4.23 | 4.21 | 3.53 | 3.57 | 3.57 |
June 30, 2025 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,012,647K ÷ $417,429K
= 2.43
The receivables turnover ratio for Premier Inc demonstrates fluctuations over the observed period from September 30, 2020, through June 30, 2025. Initially, during the September 2020 and December 2020 periods, the ratio remained steady at 3.57, indicating a consistent efficiency in collecting accounts receivable.
Subsequently, from March 31, 2021, to June 30, 2021, there was a noticeable increase to 4.21, and slightly higher at 4.23 in September 2021, suggesting an improvement in receivable collection efficiency during this interval. However, this trend was not sustained, as the ratio decreased to 3.97 by the end of 2021, implying a slight loosening in collection efficiency.
Throughout 2022, the ratio showed a downward trend, declining to 3.36 by the end of December 2022. This decline continued into early 2023, reaching 3.29 in March 2023 and further dropping to 3.22 by June 2023. The ratio remained relatively stable around this level through September 2023 at 3.24.
The downward trend persisted into late 2023 and into 2024, with the ratio decreasing to 2.90 in December 2023 and further to 2.81 in March 2024. Through the rest of 2024 and into 2025, the ratio continued to decline, reaching a low of 2.43 in June 2025.
Overall, the data suggest that Premier Inc's receivables turnover experienced an initial period of stability and even some improvement in mid-2021, followed by a consistent downward trend from late 2021 onwards. This decline indicates a gradual decrease in the efficiency of collecting receivables, implying that the company takes increasingly longer to convert its accounts receivable into cash over time.
Peer comparison
Jun 30, 2025