Premier Inc (PINC)
Operating profit margin
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 127,972 | 242,093 | 260,073 | 256,917 | 373,620 |
| Revenue | US$ in thousands | 1,346,360 | 1,336,100 | 1,432,900 | 1,721,150 | 1,299,590 |
| Operating profit margin | 9.51% | 18.12% | 18.15% | 14.93% | 28.75% |
June 30, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $127,972K ÷ $1,346,360K
= 9.51%
Premier Inc's operating profit margin has exhibited variability over the past five years, ranging from a high of 28.75% in June 2020 to a low of 9.51% in June 2024. The operating profit margin measures the efficiency of the company's operations in generating profits from its core business activities.
The significant decline in operating profit margin from 2020 to 2024 suggests potential challenges in managing costs, pricing strategies, or revenue generation. This downward trend may indicate operational inefficiencies or increased competition impacting the company's profitability.
It is essential for Premier Inc to closely monitor and address the factors influencing its operating profit margin to ensure sustainable profitability and competitiveness in the market. Further analysis of cost structures, pricing strategies, and revenue streams may be necessary to identify and implement corrective measures to improve the company's operating performance.
Peer comparison
Jun 30, 2024