Premier Inc (PINC)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 3,401,450 | 3,371,490 | 3,357,130 | 3,522,900 | 2,948,520 |
| Operating ROA | 3.76% | 7.18% | 7.75% | 7.29% | 12.67% |
June 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $127,972K ÷ $3,401,450K
= 3.76%
Premier Inc's operating return on assets (operating ROA) has shown a decreasing trend over the past five years. In the most recent fiscal year ending June 30, 2024, the operating ROA was 3.76%, significantly lower than the previous year's 7.18%. This decline indicates a decrease in the company's ability to generate earnings from its operating activities relative to its assets compared to prior periods. The trend suggests that Premier Inc may be experiencing challenges in efficiently utilizing its assets to generate operating profits, possibly due to changes in the business environment, increased expenses, or other operational factors. Further analysis may be necessary to identify the underlying causes of this decline and develop strategies to improve the company's operating ROA in the future.
Peer comparison
Jun 30, 2024