Premier Inc (PINC)
Operating return on assets (Operating ROA)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 10,550 | 58,289 | -53,108 | 105,408 | 129,064 | 79,880 | 220,083 | 242,556 | 242,093 | 262,246 | 256,504 | 246,302 | 260,073 | 270,815 | 280,181 | 272,221 | 256,917 | 260,397 | 296,019 | 346,548 |
| Total assets | US$ in thousands | 3,119,170 | 3,071,790 | 3,142,380 | 3,313,600 | 3,428,600 | 3,363,730 | 3,832,530 | 3,849,570 | 3,371,490 | 3,512,520 | 3,539,390 | 3,419,740 | 3,357,130 | 3,515,460 | 3,451,460 | 3,566,920 | 3,522,900 | 3,681,960 | 3,510,800 | 3,441,580 |
| Operating ROA | 0.34% | 1.90% | -1.69% | 3.18% | 3.76% | 2.37% | 5.74% | 6.30% | 7.18% | 7.47% | 7.25% | 7.20% | 7.75% | 7.70% | 8.12% | 7.63% | 7.29% | 7.07% | 8.43% | 10.07% |
June 30, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $10,550K ÷ $3,119,170K
= 0.34%
The analysis of Premier Inc.'s operating return on assets (ROA) over the specified period reveals a notable trend characterized by an initial decline followed by fluctuations and subsequent deterioration toward the most recent dates.
During the period ending September 30, 2020, the operating ROA stood at a robust 10.07%, indicating efficient utilization of assets to generate operating income. This high level persisted through December 31, 2020, with a slight decrease to 8.43%. The subsequent quarters saw a continued downward trajectory, dropping to 7.07% by March 31, 2021, and marginally increasing to 7.29% by June 30, 2021. The trend stabilized somewhat in the following quarters, with values reaching 7.63% at September 30, 2021, and again improving slightly to 8.12% at December 31, 2021.
From early 2022 onward, the operating ROA displayed a gradual decline, registering 7.70% at March 31, 2022, and increasing slightly to 7.75% by June 30, 2022. However, a downward shift resumed, with the metric decreasing to 7.20% at September 30, 2022, and marginally rising to 7.25% at December 31, 2022. The trend continued into 2023, with small fluctuations: 7.47% at March 31, 2023, followed by a decline to 7.18% at June 30, 2023.
By September 30, 2023, the operating ROA had fallen to 6.30%, further decreasing to 5.74% at December 31, 2023. The most recent data indicates a significant deterioration: the operating ROA plummeted to 2.37% as of March 31, 2024, and by June 30, 2024, it recovered slightly to 3.76%. The trend continued downward, with the figure at 3.18% by September 30, 2024, and turning negative at -1.69% at December 31, 2024, indicating an operational loss relative to assets. The first half of 2025 shows a recovery trend, with the operating ROA rising to 1.90% at March 31, 2025, and stabilizing at 0.34% by June 30, 2025.
Overall, the data depict a pattern of initial strength in generating operating income from assets that deteriorated over time, especially in late 2023 and 2024, culminating in negative operating ROA, which signals operational challenges impacting asset efficiency. The partial recovery into 2025 suggests tentative signs of operational stabilization; however, the level remains significantly below historical peaks, highlighting ongoing concerns regarding asset utilization effectiveness.
Peer comparison
Jun 30, 2025