Premier Inc (PINC)
Cash ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 125,146 | 89,793 | 86,143 | 129,141 | 99,304 |
| Short-term investments | US$ in thousands | — | — | — | 153,224 | — |
| Total current liabilities | US$ in thousands | 746,563 | 815,463 | 753,137 | 716,784 | 496,074 |
| Cash ratio | 0.17 | 0.11 | 0.11 | 0.39 | 0.20 |
June 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($125,146K
+ $—K)
÷ $746,563K
= 0.17
The cash ratio of Premier Inc has varied over the past five years. As of June 30, 2024, the company's cash ratio stood at 0.17, indicating that for every dollar of current liabilities, Premier Inc had $0.17 in cash or cash equivalents. This ratio has increased from the previous year's ratio of 0.11, suggesting an improvement in the company's liquidity position.
Comparing the current year's cash ratio to those of the prior years reveals fluctuations. In Jun 2023 and Jun 2022, the cash ratio remained consistent at 0.11, indicating that the company had maintained a similar level of liquidity during those periods. Notably, there was a significant decrease in the cash ratio in Jun 2021 to 0.39, indicating a higher level of liquidity compared to the other years. This spike in the cash ratio in 2021 could be attributed to a higher proportion of cash or cash equivalents relative to current liabilities at that time.
In contrast, the cash ratio was lower in Jun 2020 at 0.20 compared to 2021. This suggests that in 2020, Premier Inc may have had fewer cash reserves relative to its current liabilities, indicating a potentially less favorable liquidity position that year.
Overall, fluctuations in Premier Inc's cash ratio over the five-year period indicate varying levels of liquidity and financial strength. The company's ability to maintain and potentially improve its cash ratio in certain years signifies a positive aspect of its financial management and liquidity strategy.
Peer comparison
Jun 30, 2024