Premier Inc (PINC)
Operating profit margin
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,116 | 127,972 | 242,093 | 260,073 | 256,917 |
| Revenue | US$ in thousands | 1,012,650 | 1,346,360 | 1,336,100 | 1,432,900 | 1,721,150 |
| Operating profit margin | 0.11% | 9.51% | 18.12% | 18.15% | 14.93% |
June 30, 2025 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,116K ÷ $1,012,650K
= 0.11%
The operating profit margin of Premier Inc has demonstrated notable fluctuations over the observed fiscal periods. As of June 30, 2021, the operating profit margin stood at 14.93%, indicating that approximately 14.93 cents of operating profit were generated per dollar of revenue. This margin increased substantially by June 30, 2022, reaching 18.15%, reflecting an improvement in operational efficiency or profitability relative to revenue. A marginal decrease is observed in the subsequent year, with the operating profit margin slightly declining to 18.12% on June 30, 2023, which is essentially stable compared to the previous period.
However, a significant deterioration occurs in the following year, with the margin dropping sharply to 9.51% as of June 30, 2024. This decline indicates a considerable reduction in operating profitability, possibly stemming from increased operating expenses, reduced revenues, or a combination of both. The downward trend continues into the next period, where the operating profit margin plummets to an almost negligible 0.11% as of June 30, 2025. This near-zero margin suggests that the company's core operations are barely generating profit, raising concerns about operational sustainability and efficiency at this stage.
Overall, the trend from 2021 through 2025 illustrates a peak in operating profitability around mid-2022 and mid-2023, followed by a steep decline in subsequent years. The substantial reduction in operating profit margin in 2024 and 2025 warrants further investigation into underlying operational costs, revenue streams, and external factors impacting profitability.
Peer comparison
Jun 30, 2025