Premier Inc (PINC)
Quick ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 83,725 | 125,146 | 89,793 | 86,143 | 129,141 |
| Short-term investments | US$ in thousands | — | 4,040 | — | — | 153,224 |
| Receivables | US$ in thousands | 417,429 | 462,525 | 414,514 | 374,190 | 408,730 |
| Total current liabilities | US$ in thousands | 910,633 | 746,563 | 815,463 | 753,137 | 716,784 |
| Quick ratio | 0.55 | 0.79 | 0.62 | 0.61 | 0.96 |
June 30, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($83,725K
+ $—K
+ $417,429K)
÷ $910,633K
= 0.55
The analysis of Premier Inc’s quick ratio over the specified period reveals several notable trends. As of June 30, 2021, the quick ratio was 0.96, indicating that the company possessed nearly enough liquid assets to cover its current liabilities without relying on inventory sales. This level suggests a relatively strong liquidity position at that time.
By June 30, 2022, the quick ratio declined significantly to 0.61, reflecting a weakening in liquidity. The ratio remained relatively stable through June 30, 2023, with a slight increase to 0.62. Despite this marginal uptick, the quick ratio remained well below 1.0, implying that Premier Inc continued to face challenges in meeting short-term obligations purely through liquid assets other than inventory.
A notable improvement occurred by June 30, 2024, when the quick ratio increased to 0.79. This enhancement suggests a positive trend towards improved liquidity, although the ratio still did not reach the optimal level of 1.0, indicating that the firm’s liquid assets were still somewhat insufficient to fully cover current liabilities without reliance on inventory or other assets.
However, by June 30, 2025, the quick ratio decreased again to 0.55, perturbing the improvements made in the prior year. This reduction underscores a further decline in liquidity, which could point to a deterioration in the quality or availability of liquid assets relative to short-term liabilities.
Overall, the data indicates that Premier Inc’s quick ratio has experienced fluctuations over the analyzed period. The ratio’s initial decline, slight recovery, and subsequent decrease suggest variability in the company's short-term liquidity position. The ratios consistently remain below the ideal threshold of 1.0, indicating that the company has generally exhibited a conservative liquidity profile with potential vulnerabilities in meeting immediate obligations solely through liquid assets.
Peer comparison
Jun 30, 2025