Premier Inc (PINC)
Total asset 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 |
| Total assets | US$ in thousands | 3,097,070 | 3,401,450 | 3,371,490 | 3,357,130 | 3,522,900 |
| Total asset turnover | 0.33 | 0.40 | 0.40 | 0.43 | 0.49 |
June 30, 2025 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,012,650K ÷ $3,097,070K
= 0.33
The total asset turnover ratio for Premier Inc exhibits a decreasing trend over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the ratio declined from 0.49 in 2021 to 0.43 in 2022, marking a modest reduction. This downward movement continued into 2023 and remained relatively stable at 0.40 in both 2023 and 2024. By June 30, 2025, the ratio further declined to 0.33, reflecting a notable decrease over the four-year span.
This declining trajectory indicates that Premier Inc has become less efficient in utilizing its total assets to generate sales over the period. The reduction suggests that for each dollar invested in assets, the company is generating progressively less revenue. Several factors could contribute to this trend, such as expanded asset base not proportionally translating into increased sales, shifts in operational efficiency, or changes in market conditions affecting revenue generation.
Overall, the steady decrease in the total asset turnover ratio signals a need for the company to evaluate its asset utilization strategies to enhance operational efficiency and better leverage its asset base to support revenue growth.
Peer comparison
Jun 30, 2025