Premier Inc (PINC)
Current ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 748,016 | 641,626 | 645,566 | 782,296 | 618,362 |
| Total current liabilities | US$ in thousands | 746,563 | 815,463 | 753,137 | 716,784 | 496,074 |
| Current ratio | 1.00 | 0.79 | 0.86 | 1.09 | 1.25 |
June 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $748,016K ÷ $746,563K
= 1.00
Premier Inc's current ratio has fluctuated over the past five years, indicating varying levels of liquidity and short-term solvency. The current ratio decreased from 1.25 in 2020 to 0.79 in 2023 before rebounding to 1.00 in 2024. A current ratio of 1.00 in 2024 suggests that Premier Inc possesses just enough current assets to cover its current liabilities.
The decline in the current ratio from 2020 to 2023 may indicate potential liquidity issues or an imbalance in the company's current assets and liabilities. However, the improvement in 2024 to 1.00 indicates a better position in terms of short-term liquidity. It is essential for Premier Inc to maintain a current ratio above 1.00 to ensure it can meet its short-term obligations comfortably. Further analysis of the individual components contributing to the current ratio would provide deeper insights into Premier Inc's liquidity management.
Peer comparison
Jun 30, 2024