Premier Inc (PINC)
Receivables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,346,361 | 1,336,457 | 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 | 1,299,592 | 1,273,073 | 1,239,463 | 1,227,446 |
| Receivables | US$ in thousands | 126,694 | 121,159 | 122,300 | 102,122 | 115,295 | 115,289 | 120,917 | 105,226 | 114,129 | 125,632 | 137,902 | 139,111 | 141,447 | 188,519 | 166,438 | 131,783 | 135,063 | 139,902 | 166,907 | 157,830 |
| 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 |
June 30, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,346,361K ÷ $126,694K
= 10.63
Premier Inc's receivables turnover ratio has shown fluctuations over the past several quarters, ranging from a low of 7.43 to a high of 13.13. The average receivables turnover ratio over this period is approximately 10.94. A higher receivables turnover ratio indicates that the company is more efficient in converting its accounts receivable into cash.
The ratio peaked at 13.13 in both September 2023 and September 2022, indicating that Premier Inc was able to collect its receivables relatively quickly during those periods. Conversely, the lowest recorded ratio of 7.43 in September 2019 highlights a potential delay in collecting payments from customers.
Overall, while there have been fluctuations in Premier Inc's receivables turnover ratio, it has generally remained above 7.0, suggesting that the company has been effective in managing its accounts receivable and converting them into cash within a reasonable timeframe. It is important to continue monitoring this ratio to ensure efficient working capital management and cash flow optimization.
Peer comparison
Jun 30, 2024