Premier Inc (PINC)
Cash ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 83,725 | 125,146 | 89,793 | 86,143 | 129,141 |
| Short-term investments | US$ in thousands | — | 4,040 | — | — | 153,224 |
| Total current liabilities | US$ in thousands | 910,633 | 746,563 | 815,463 | 753,137 | 716,784 |
| Cash ratio | 0.09 | 0.17 | 0.11 | 0.11 | 0.39 |
June 30, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($83,725K
+ $—K)
÷ $910,633K
= 0.09
The cash ratio of Premier Inc has exhibited notable fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the company maintained a cash ratio of 0.39, indicating that it had a relatively strong liquidity position, with cash and cash equivalents covering approximately 39% of its current liabilities.
By June 30, 2022, the cash ratio declined sharply to 0.11, suggesting a significant reduction in cash holdings relative to current liabilities. This downward trend persisted through June 30, 2023, where the cash ratio remained at 0.11, indicating stability in the lower liquidity level but continuing insufficient cash coverage for current liabilities on its own.
In the subsequent year, the cash ratio increased marginally to 0.17 as of June 30, 2024, signaling an improvement in liquidity, albeit still below the initial 2021 level. However, by June 30, 2025, the cash ratio decreased again to 0.09, reflecting a further diminution in cash liquidity.
Overall, Premier Inc’s cash ratio has demonstrated a declining trend from 2021 through 2025, with a brief uptick in 2024. This suggests that the company's ability to cover its current liabilities solely through cash and cash equivalents has weakened over time, potentially highlighting increased liquidity risk or a strategic shift toward other forms of current assets.
Peer comparison
Jun 30, 2025