Premier Inc (PINC)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 567,003 | 576,425 | 608,407 | 707,636 | 741,216 | 674,699 | 990,257 | 1,002,370 | 641,626 | 651,128 | 673,965 | 738,963 | 645,566 | 756,000 | 728,113 | 832,725 | 782,296 | 889,192 | 786,338 | 718,053 |
| 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 |
| Current ratio | 0.62 | 0.65 | 0.83 | 1.09 | 0.99 | 0.93 | 1.43 | 1.30 | 0.79 | 0.72 | 0.72 | 0.88 | 0.86 | 0.88 | 1.01 | 1.10 | 1.09 | 1.04 | 1.12 | 1.07 |
June 30, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $567,003K ÷ $910,633K
= 0.62
The analysis of Premier Inc.'s current ratio over the specified period reveals notable fluctuations in liquidity positioning. Initially, the company's current ratio demonstrated a degree of stability around 1.07 to 1.12 from September 2020 through December 2021, indicating that current assets modestly exceeded current liabilities during this period. These figures suggest the organization maintained a cautious liquidity buffer, sufficient to cover short-term obligations without significant liquidity concerns.
However, starting in the first quarter of 2022, there was a discernible decline in the current ratio, with values dropping below 1. reaching 0.88 by March 2022 and remaining below the benchmark of 1 through June 2023. This downward trend indicates a weakening of liquidity, potentially reflecting increased current liabilities, decreased current assets, or a combination of both. Such a decline signals a reduced capacity to meet short-term obligations solely from liquid assets, which could heighten financial vulnerability.
In the fourth quarter of 2023, the current ratio experienced a notable recovery, increasing to 1.43—its highest point within the analyzed period—reflecting an improved liquidity position. This enhancement persisted into the first quarter of 2024, where the ratio stood at 0.93, slightly below 1. Subsequently, the ratio showed a gradual increase, reaching 1.09 by September 2024. Despite this recovery, the ratio declined again to 0.83 in December 2024 and further decreased to 0.65 by March 2025, indicating renewed liquidity pressures and heightened risk of short-term liquidity constraints.
Overall, the trend suggests periods of liquidity deterioration followed by temporary recoveries. The fluctuations in the current ratio highlight the company's dynamic liquidity landscape, with potential implications for operational flexibility and financial stability. Continued monitoring of the ratio is advised to assess future liquidity trends and ensure appropriate management of short-term assets and liabilities.
Peer comparison
Jun 30, 2025