Premier Inc (PINC)
Gross profit margin
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 888,012 | 896,289 | 885,039 | 837,334 | 866,801 |
| Revenue | US$ in thousands | 1,346,360 | 1,336,100 | 1,432,900 | 1,721,150 | 1,299,590 |
| Gross profit margin | 65.96% | 67.08% | 61.77% | 48.65% | 66.70% |
June 30, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $888,012K ÷ $1,346,360K
= 65.96%
Premier Inc's gross profit margin has shown fluctuations over the past five years. The trend indicates that the gross profit margin was relatively stable in 2020 and 2023, with percentages of 66.70% and 67.08%, respectively. However, there was a significant decrease in 2021 to 48.65%, suggesting a potential issue with cost control or pricing strategy that year. The gross profit margin rebounded in 2022 to 61.77% but then increased further in 2023 to 65.96%.
It is important to note that a high gross profit margin indicates that the company is effectively managing its production costs relative to its sales revenue. An increasing trend in gross profit margin can indicate improved efficiency and profitability in the business operations. However, fluctuations in gross profit margin over the years may also signal underlying operational challenges or changes in the competitive landscape that impact the company's ability to generate profits from its core business activities. Further analysis of cost structure, pricing strategies, and industry dynamics would help in understanding the drivers behind these fluctuations.
Peer comparison
Jun 30, 2024