Premier Inc (PINC)
Working capital turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,346,360 | 1,336,100 | 1,432,900 | 1,721,150 | 1,299,590 |
| Total current assets | US$ in thousands | 748,016 | 641,626 | 645,566 | 782,296 | 618,362 |
| Total current liabilities | US$ in thousands | 746,563 | 815,463 | 753,137 | 716,784 | 496,074 |
| Working capital turnover | 926.61 | — | — | 26.27 | 10.63 |
June 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,346,360K ÷ ($748,016K – $746,563K)
= 926.61
Working capital turnover is a financial ratio that measures how efficiently a company is using its working capital to generate revenue. The higher the working capital turnover ratio, the more times working capital is being turned over in a given period.
Premier Inc's working capital turnover has shown significant fluctuation over the past five years, based on the data provided. In 2020, the ratio was 10.63, indicating that Premier Inc was able to turn over its working capital approximately 10.63 times during that year. This suggests efficient management of working capital in generating revenue.
In 2021, there was a notable increase in the working capital turnover to 26.27, reflecting a substantial improvement in how efficiently Premier Inc utilized its working capital to generate revenue compared to the previous year.
However, the data for 2022 and 2023 is not available, as indicated by the dashes in the table. Without this information, it is challenging to analyze the trend across these specific years.
Finally, in 2024, Premier Inc's working capital turnover ratio significantly jumped to 926.61, signifying a remarkable improvement in the efficiency of using working capital to generate revenue. This increase could be attributed to various factors such as improved inventory management, better receivables collection, or more effective cash management practices.
Overall, the fluctuation in Premier Inc's working capital turnover ratio highlights the importance of effectively managing working capital to optimize revenue generation and operational efficiency.
Peer comparison
Jun 30, 2024