Premier Inc (PINC)
Working capital 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 |
| Total current assets | US$ in thousands | 748,016 | 674,699 | 990,257 | 1,002,370 | 641,626 | 651,128 | 673,965 | 738,963 | 645,566 | 756,000 | 728,113 | 832,725 | 782,296 | 889,192 | 786,338 | 718,053 | 618,362 | 752,371 | 574,812 | 576,684 |
| Total current liabilities | US$ in thousands | 746,563 | 725,679 | 693,695 | 770,526 | 815,463 | 900,332 | 934,028 | 838,001 | 753,137 | 863,175 | 723,010 | 757,041 | 716,784 | 852,845 | 704,872 | 668,064 | 496,074 | 686,183 | 450,242 | 410,631 |
| Working capital turnover | 926.61 | — | 4.44 | 5.78 | — | — | — | — | — | — | 332.31 | 22.98 | 26.27 | 43.54 | 17.77 | 26.89 | 10.63 | 19.23 | 9.95 | 7.39 |
June 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,346,361K ÷ ($748,016K – $746,563K)
= 926.61
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher ratio indicates better utilization of working capital.
Based on the data provided for Premier Inc, the working capital turnover ratio fluctuated over the past several quarters. In the most recent period ending June 30, 2024, the ratio was quite high at 926.61. This suggests that Premier Inc was able to generate a significant amount of sales revenue relative to its working capital.
In contrast, there are several periods where the working capital turnover ratio was not available (marked as —), indicating that the necessary data was missing or not disclosed. However, in the periods where data is available, there are fluctuations observed. For instance, the ratio was relatively low in Dec 31, 2023, at 4.44, indicating that the company may have been less efficient in utilizing its working capital to generate sales.
It is essential for Premier Inc to consistently monitor and analyze its working capital turnover ratio to ensure optimal utilization of working capital resources. The company should aim to maintain a balance between the efficiency of working capital usage and the level of sales generated to support sustainable business operations and growth.
Peer comparison
Jun 30, 2024