Premier Inc (PINC)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 65.96% | 67.08% | 61.77% | 48.65% | 66.70% |
| Operating profit margin | 9.51% | 18.12% | 18.15% | 14.93% | 28.75% |
| Pretax margin | 11.13% | 18.71% | 22.81% | 13.87% | 17.15% |
| Net profit margin | 7.93% | 13.09% | 18.73% | 17.01% | 10.03% |
Premier Inc's profitability ratios have shown fluctuations over the past five years. The gross profit margin has varied, reaching a peak of 67.08% in 2023 before dropping to 65.96% in 2024. This indicates the company's ability to generate revenue after accounting for the cost of goods sold.
The operating profit margin has also been inconsistent, with a significant decline from 28.75% in 2020 to 9.51% in 2024. This suggests fluctuations in operating expenses relative to revenue generation. Despite this, the company has maintained positive profitability in its operations over the years.
The pretax margin has fluctuated as well, with a notable decrease in 2024 compared to the previous years. This ratio reflects Premier Inc's ability to generate profits before accounting for taxes, indicating the company's operational efficiency and financial management.
The net profit margin has also varied, showing an upward trend from 2020 to 2022 before declining slightly in 2024. This ratio reflects Premier Inc's bottom line profitability after all expenses, including taxes, have been accounted for.
Overall, while Premier Inc has experienced fluctuations in its profitability ratios over the years, the company has generally maintained positive margins, showcasing its ability to generate profits and manage costs effectively.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.76% | 7.18% | 7.75% | 7.29% | 12.67% |
| Return on assets (ROA) | 3.14% | 5.19% | 7.99% | 8.31% | 4.42% |
| Return on total capital | 6.52% | 9.94% | 10.61% | 10.14% | 20.04% |
| Return on equity (ROE) | 5.44% | 7.49% | 11.93% | 13.13% | 7.01% |
Over the past five years, Premier Inc's profitability ratios have shown some fluctuations.
- Operating return on assets (Operating ROA) has decreased from 12.67% in 2020 to 3.76% in 2024. This decline indicates that the company's operating efficiency in generating profits from its assets has decreased over the years.
- Return on assets (ROA) has fluctuated within a range, with a peak of 8.31% in 2021 and a low of 3.14% in 2024. This ratio shows the overall effectiveness of the management in utilizing its assets to generate profit.
- Return on total capital has also shown a declining trend, dropping from 20.04% in 2020 to 6.52% in 2024. This ratio reflects the overall efficiency of the company in generating profit from its total invested capital.
- Return on equity (ROE) has varied over the period, with a high of 13.13% in 2021 and a low of 5.44% in 2024. ROE indicates the profitability of the company from the perspective of its shareholders.
Overall, Premier Inc's profitability ratios have shown some inconsistency over the years, with a general downward trend in recent years. This indicates potential challenges in maintaining profitability levels and effectiveness in utilizing assets and capital to generate returns for shareholders.