Premier Inc (PINC)
Gross profit margin
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 743,359 | 888,012 | 896,289 | 885,039 | 837,334 |
| Revenue | US$ in thousands | 1,012,650 | 1,346,360 | 1,336,100 | 1,432,900 | 1,721,150 |
| Gross profit margin | 73.41% | 65.96% | 67.08% | 61.77% | 48.65% |
June 30, 2025 calculation
Gross profit margin = Gross profit ÷ Revenue
= $743,359K ÷ $1,012,650K
= 73.41%
The gross profit margin of Premier Inc demonstrates a significant upward trend over the observed period from June 30, 2021, to June 30, 2025. In the fiscal year ending June 30, 2021, the gross profit margin was recorded at 48.65%, indicating the proportion of revenue remaining after deducting the cost of goods sold (COGS) was relatively moderate. By June 30, 2022, this margin increased substantially to 61.77%, reflecting an improvement in either sales pricing, cost management, or both.
The upward trajectory continued through June 30, 2023, reaching 67.08%, which signifies a further enhancement in profitability relative to gross revenue. This suggests that Premier Inc may have realized better pricing strategies, improved operational efficiencies, or reduced costs associated with COGS during this period. However, a slight decline is observed in the subsequent year ending June 30, 2024, where the gross profit margin marginally decreased to 65.96%. Despite this small setback, the margin remains significantly higher than earlier years, indicating sustained improvements in gross profitability.
The most notable change occurs by June 30, 2025, with the gross profit margin rising to 73.41%. This peak signifies that Premier Inc was able to generate a larger proportion of gross profit relative to its sales, potentially due to continued cost containment, favorable pricing strategies, or increased sales of higher-margin products or services. Overall, the trend suggests a strong and consistent enhancement in gross profitability over the four-year span, reflecting positively on the company’s operational efficiency and pricing POWER.
Peer comparison
Jun 30, 2025