Premier Inc (PINC)
Current ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 585,803 | 748,016 | 641,626 | 645,566 | 782,296 |
| Total current liabilities | US$ in thousands | 910,633 | 746,563 | 815,463 | 753,137 | 716,784 |
| Current ratio | 0.64 | 1.00 | 0.79 | 0.86 | 1.09 |
June 30, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $585,803K ÷ $910,633K
= 0.64
The current ratio of Premier Inc has experienced notable fluctuations over the period from June 30, 2021, to June 30, 2025. At the end of June 2021, the current ratio was 1.09, indicating that the company had slightly more current assets than current liabilities, reflecting a modest liquidity cushion. However, by June 30, 2022, this ratio declined significantly to 0.86, suggesting a reduction in liquidity where current liabilities exceeded current assets, potentially raising concerns about short-term financial flexibility. This downward trend continued into June 30, 2023, with the ratio decreasing further to 0.79, signifying an ongoing deterioration in liquidity and increased reliance on short-term obligations.
In an attempt to improve liquidity, the current ratio rebounded to 1.00 by June 30, 2024, indicating that current assets and current liabilities were approximately equal, thus restoring a balanced short-term financial position. Nevertheless, the ratio declined again to 0.64 by June 30, 2025, signaling a substantial decline in liquidity, with current liabilities surpassing current assets by a significant margin.
Overall, the pattern reflects a trend of decreasing liquidity over the examined period, with intermittent improvements that were not sustained. The declining current ratio suggests an increasing challenge for Premier Inc in meeting its short-term obligations solely through its current assets, which may warrant further investigation into the underlying causes and potential implications for financial stability.
Peer comparison
Jun 30, 2025