Premier Inc (PINC)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 83,725 | 71,327 | 85,850 | 86,956 | 125,146 | 61,856 | 371,110 | 453,261 | 89,793 | 91,493 | 94,623 | 176,630 | 86,143 | 179,503 | 86,161 | 184,421 | 129,141 | 132,584 | 109,013 | 120,416 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 186,282 | 153,224 | 153,747 | 148,245 | — |
| Total current liabilities | US$ in thousands | 910,633 | 880,707 | 732,649 | 648,548 | 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 |
| Cash ratio | 0.09 | 0.08 | 0.12 | 0.13 | 0.17 | 0.09 | 0.53 | 0.59 | 0.11 | 0.10 | 0.10 | 0.21 | 0.11 | 0.21 | 0.12 | 0.49 | 0.39 | 0.34 | 0.36 | 0.18 |
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 figures for Premier Inc over the analyzed period exhibit significant fluctuations, reflecting variability in the company's liquidity position. The cash ratio commenced at 0.18 as of September 30, 2020, indicating that cash and cash equivalents covered 18% of current liabilities. This metric increased markedly throughout 2020 and 2021, reaching its peak at 0.49 on September 30, 2021, suggesting an improved liquidity buffer with nearly half of current obligations backed by cash holdings at that time.
Following this peak, the cash ratio declined sharply to a low of approximately 0.12 by December 2021, and continued to hover at modest levels through mid-2022, with values around 0.10 to 0.21. This pattern indicates periods of tightening liquidity or increased short-term obligations not matched proportionally by cash assets. The ratio experienced a notable resurgence in September 2023, rising to 0.59, the highest point in the observed timeline, which implies a strong liquidity position at that juncture with cash supporting over half of current liabilities.
Post this peak, there was a gradual decline to about 0.13 by September 2024, followed by minor fluctuations in subsequent quarters, with ratios consistently remaining below 0.20 and reaching as low as 0.08 in March 2025. This sustained low cash ratio over the recent periods suggests a limited cash cushion relative to current liabilities, which might imply increased reliance on other liquidity measures, operational cash flows, or non-cash current assets to meet short-term obligations.
Overall, the fluctuations depict a company with variable short-term liquidity management, experiencing periods of strong cash coverage interspersed with phases of tighter liquidity. The peaks and troughs may reflect strategic cash management decisions, changes in operational cash flow, or shifts in current liabilities. The recent low levels warrant attention to ensure the company's ability to meet short-term obligations without undue distress.
Peer comparison
Jun 30, 2025