Premier Inc (PINC)
Net profit margin
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 20,269 | 119,544 | 175,026 | 265,867 | 287,522 |
| Revenue | US$ in thousands | 1,012,650 | 1,346,360 | 1,336,100 | 1,432,900 | 1,721,150 |
| Net profit margin | 2.00% | 8.88% | 13.10% | 18.55% | 16.71% |
June 30, 2025 calculation
Net profit margin = Net income ÷ Revenue
= $20,269K ÷ $1,012,650K
= 2.00%
The net profit margin for Premier Inc has exhibited notable fluctuations over the indicated period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the company demonstrated a robust net profit margin of 16.71%, indicating effective profit conversion from revenues during that fiscal year. This margin increased in the subsequent year to 18.55% on June 30, 2022, suggesting improved profitability or possibly favorable operational performance, cost management, or revenue growth.
However, starting from June 30, 2023, a downward trend commenced, with the net profit margin declining to 13.10%. This decline continued into the fiscal year ending June 30, 2024, where the margin further contracted to 8.88%. The most recent data available for June 30, 2025, indicates a significant decrease to 2.00%, reflecting a substantial erosion of profitability relative to revenue.
The overall trend indicates a deterioration in the company's net profit margin over the analyzed period. The initial years showed growth and relative profitability, but from mid-2023 onward, the margin contracts markedly. This decline could be attributed to various factors such as increased operational costs, declining revenues, competitive pressures, or other external or internal challenges impacting profitability. The sharp reduction in net profit margin suggests increasing difficulty in maintaining previous levels of profitability, which warrants further analysis into underlying causes such as cost structure, revenue streams, and strategic changes implemented during this period.
Peer comparison
Jun 30, 2025