Premier Inc (PINC)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 3,097,070 | 3,401,450 | 3,371,490 | 3,357,130 | 3,522,900 |
| Operating ROA | 0.04% | 3.76% | 7.18% | 7.75% | 7.29% |
June 30, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $1,116K ÷ $3,097,070K
= 0.04%
An analysis of Premier Inc's operating return on assets (operating ROA) over the observed period reveals notable fluctuations. As of June 30, 2021, the operating ROA stood at 7.29%, indicating a relatively efficient utilization of assets to generate operating income. This figure increased modestly to 7.75% by June 30, 2022, suggesting slight improvement in operational efficiency or asset utilization during that year. However, a subsequent decline is observed, with the operating ROA dropping to 7.18% on June 30, 2023, indicating a marginal reduction in operating performance.
The downward trend becomes more pronounced in the following years, with the operating ROA decreasing sharply to 3.76% by June 30, 2024. This decline signifies a substantial reduction in the company's ability to generate operating income from its assets, potentially reflecting operational challenges, increased costs, or strategic shifts. The most significant change is observed between 2024 and 2025, when the operating ROA plunges to a mere 0.04%. Such a near-zero figure indicates a profound deterioration in operational efficiency, effectively implying that the company is generating negligible operating income relative to its assets.
Overall, the trend indicates a progressive decline in Premier Inc's operational efficiency over the four-year span, culminating in a near-complete erosion of operating returns on assets by mid-2025. This pattern warrants further investigation into underlying factors, including changes in revenue, operating expenses, asset base adjustments, or strategic repositioning, to fully understand the causes behind this decline.
Peer comparison
Jun 30, 2025