Premier Inc (PINC)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | 60.63 | 61.19 | 61.39 | 58.48 | 63.85 | 76.84 | 88.39 | 89.26 | 79.72 | 68.62 | 66.41 | 69.72 | 72.84 | 108.09 | 107.50 | 105.89 |
| Days of sales outstanding (DSO) | days | 150.46 | 139.90 | 144.68 | 131.57 | 130.81 | 129.79 | 125.92 | 112.60 | 113.24 | 110.92 | 108.54 | 101.13 | 95.32 | 88.44 | 91.91 | 86.28 | 86.68 | 103.30 | 102.28 | 102.35 |
| Number of days of payables | days | 25.69 | 21.78 | 20.19 | 20.45 | 45.86 | 52.97 | 45.77 | 40.63 | 45.13 | 43.52 | 46.63 | 43.09 | 29.73 | 28.30 | 31.55 | 36.93 | 35.27 | 48.16 | 56.97 | 50.40 |
| Cash conversion cycle | days | 124.77 | 118.12 | 124.49 | 111.11 | 145.57 | 138.01 | 141.54 | 130.45 | 131.96 | 144.23 | 150.30 | 147.30 | 145.30 | 128.77 | 126.78 | 119.07 | 124.24 | 163.24 | 152.81 | 157.84 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 150.46 – 25.69
= 124.77
The analysis of Premier Inc’s cash conversion cycle (CCC) over the period from September 2020 to June 2025 indicates notable fluctuations that reflect changes in the company’s operational efficiency and working capital management.
Initially, the CCC stood at approximately 157.84 days in September 2020, representing a relatively extended cycle. This level gradually decreased over the subsequent quarters, reaching a low of approximately 119.07 days by September 2021, suggesting improvements in the company's ability to shorten its cash cycle—potentially through more efficient management of receivables, payables, or inventory.
From late 2021 through early 2022, the CCC showed some fluctuations, rising slightly to over 150 days by December 2022, and then decreasing again to about 131.96 days by June 2023. During this period, the CCC exhibited a pattern of partial recovery and slight deterioration, reflecting potential changes in operational practices or external market conditions.
An evident downward trend resumes in late 2023, with the CCC reaching as low as approximately 111.11 days in September 2024. This decline implies a significant improvement in working capital efficiency, possibly associated with faster receivables collections, extended payable periods, or better inventory turnover.
However, the CCC experienced an uptick again in the last recorded quarter, reaching approximately 124.77 days in June 2025. Despite this increase, the cycle remains below the earlier peak levels observed in 2020 and 2022, indicating an overall trend of operational refinement over the analyzed period.
In summary, the cash conversion cycle of Premier Inc has demonstrated considerable variability, generally trending downward from mid-2021 through 2024, which suggests enhancements in cash flow management and operational efficiency. The fluctuations also reflect responsiveness to internal strategic adjustments and external market dynamics over the analyzed timeframe.
Peer comparison
Jun 30, 2025