Premier Inc (PINC)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 72.47% | 70.07% | 69.81% | 68.50% | 67.09% | 68.12% | 67.13% | 67.48% | 67.08% | 66.44% | 64.70% | 63.33% | 61.77% | 55.97% | 51.90% | 49.13% | 48.65% | 51.94% | 58.16% | 63.25% |
| Operating profit margin | 1.04% | 5.30% | -4.72% | 8.64% | 10.00% | 6.24% | 16.72% | 18.09% | 18.12% | 19.62% | 18.83% | 17.83% | 18.15% | 17.21% | 16.52% | 15.65% | 14.93% | 16.46% | 20.45% | 25.78% |
| Pretax margin | 9.68% | 14.46% | 4.76% | 15.54% | 11.64% | 7.68% | 17.37% | 18.24% | 18.71% | 19.82% | 18.56% | 17.97% | 22.81% | 21.56% | 20.67% | 18.88% | 14.56% | 16.34% | 18.73% | 27.21% |
| Net profit margin | 2.00% | 5.68% | -0.42% | 11.93% | 9.26% | 6.27% | 12.71% | 13.20% | 13.10% | 13.73% | 12.85% | 13.50% | 18.55% | 18.14% | 17.42% | 15.17% | 18.05% | 18.16% | 19.16% | 20.07% |
The profitability ratios for Premier Inc over the analyzed period demonstrate notable trends, reflecting shifts in the company's efficiency and cost management.
Gross Profit Margin:
Premier Inc consistently maintained a high gross profit margin, which exhibited an upward trajectory over the stated period. Starting at 63.25% as of September 30, 2020, the margin declined to a low of approximately 48.65% by June 30, 2021, potentially indicating increased cost pressures or product mix changes. Subsequently, there was a steady and sustained recovery, with the margin reaching approximately 67.48% by September 30, 2023, and further climbing to around 72.47% projected for June 2025. This upward trend suggests an improvement in cost control, pricing strategies, or a shift toward higher-margin products or services.
Operating Profit Margin:
The operating profit margin experienced fluctuations, decreasing from 25.78% in September 2020 to a low of approximately 14.93% in June 2021. After this trough, there was a gradual recovery, peaking at around 19.62% in March 2023. However, the margin displayed volatility afterward, with a sharp decline into negative territory (-4.72%) by December 2024, indicating periods of losses at the operating level. The recent data shows a modest recovery towards positive territory, but the overall trend indicates increased operational challenges or expenses impacting profitability in recent periods.
Pre-Tax Margin:
Pre-tax margins followed a pattern similar to operating margins, starting at 27.21% in September 2020. These margins declined to a low of approximately 14.56% in June 2021, then recovered to around 22.81% by June 2022. In later periods, the pre-tax margin experienced volatility, dipping to 4.76% in December 2024, indicative of increased burdens such as interest, non-operating expenses, or other factors affecting pre-tax profitability. Recent figures show a partial recovery, but the margin remains considerably below initial levels.
Net Profit Margin:
Net profit margins reflect the bottom-line profitability after all expenses. Starting at 20.07% in September 2020, the margin showed a gradual decline, hitting approximately 13.50% in September 2022. A significant deterioration is observed in December 2024, with a marginal negative margin (-0.42%), implying net losses for that period. However, projections for March 2025 suggest an improvement back to positive territory, around 5.68%. This pattern indicates periods of profitability interrupted by significant setbacks, possibly driven by extraordinary expenses, tax impacts, or operational setbacks.
Overall Interpretation:
Premier Inc's profitability ratios reveal a company that initially experienced strong margins but faced challenges starting around mid-2021, with declines across gross, operating, pre-tax, and net margins. The recent upward trends in gross profit margin suggest improved revenue quality or cost management at the gross level. Nonetheless, volatility in operating and net margins highlights ongoing operational and financial pressures, including occasional losses at the net level. The data implies recent efforts to enhance profitability have begun to yield positive results, though the company continues to navigate periods of diminished or negative margins, reflecting a complex interplay of factors affecting overall profitability.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 0.65% | 2.03% | -0.15% | 4.39% | 3.49% | 2.39% | 4.37% | 4.60% | 5.19% | 5.22% | 4.95% | 5.46% | 7.92% | 8.12% | 8.56% | 7.40% | 8.82% | 7.81% | 7.90% | 7.84% |
| Return on total capital | 1.33% | 4.66% | -3.00% | 5.47% | 6.52% | 4.31% | 9.27% | 10.57% | 11.00% | 11.64% | 11.53% | 11.48% | 15.03% | 15.67% | 15.86% | 14.60% | 11.73% | 13.08% | 14.88% | 17.75% |
| Return on equity (ROE) | 1.32% | 4.10% | -0.28% | 7.45% | 6.09% | 4.18% | 7.00% | 7.53% | 7.50% | 7.85% | 7.59% | 8.25% | 11.82% | 12.78% | 12.96% | 11.33% | 13.93% | 12.98% | 12.76% | 12.64% |
The profitability ratios of Premier Inc, as reflected over the specified periods, demonstrate notable trends and fluctuations.
Operating Return on Assets (Operating ROA):
Initially, the operating ROA was relatively high at approximately 10.07% at September 2020, followed by a decline to 8.43% by December 2020, which persisted through subsequent quarters with minor fluctuations. The ratio experienced a gradual decrease through 2021 and 2022, reaching a low point of 5.74% at the end of December 2023. A significant decline is evident in the March 2024 data, registering only 2.37%, which indicates a deterioration in operational efficiency relative to total assets. Subsequent quarters showed some recovery, with the ratio rising to 3.76% in June 2024 before decreasing again in September 2024 to 3.18%, and ultimately plunging to -1.69% at December 2024. Early 2025 figures suggest a partial recovery, with the ratio climbing to 1.90%, supported further by slight increases in June and September 2025.
Return on Assets (ROA):
The basic return on assets follows a similar trend. Starting at 7.84% in September 2020, the ratio remained relatively stable into 2021 but showed some improvement, peaking at around 8.82% in June 2021. A declining trend took hold thereafter, with the ratio dropping sharply in late 2022 and into 2023, reaching 4.37% by December 2023. The measured decline continued into March 2024, settling around 2.39%, before showing sporadic rebounds to approximately 3.49% in June 2024 and 4.39% in September 2024. The period ending December 2024 was marked by an anomaly with a negative ROA of -0.15%, indicating a loss relative to total assets. Early 2025 noted a modest recovery to 2.03%, though the ratio remained relatively subdued.
Return on Total Capital:
This ratio indicates a decreasing trend from 17.75% in September 2020 to a low of 4.31% in March 2024. The decline resumes after mid-2024, with the ratio turning negative at -3.00% in December 2024, reflecting unprofitable use of capital during that period. Slight recoveries are observed with figures of 6.52% in June 2024 and 4.66% in March 2025.
Return on Equity (ROE):
Beginning at 12.64% in September 2020, the ROE exhibited gradual fluctuations but generally trended downward over time. Notable declines coincide with periods of reduced profitability, notably reaching 7.00% by December 2023 and then falling sharply into early 2024, where it even registered a negative figure of -0.28% in December 2024. The subsequent quarters saw modest improvements, reaching 4.10% in March 2025, though still considerably lower than initial levels.
Summary:
Overall, the profitability ratios of Premier Inc depict a pattern of decline beginning around late 2021, intensifying through 2022 and into 2023. The ratios, particularly Operating ROA and ROA, exhibit a pronounced downward trend, culminating in periods of negative returns in late 2024, indicating losses relative to assets and capital employed. Partial recoveries in early 2025 suggest some operational stabilization, although profitability remains subdued. These trends highlight challenges faced by the company in sustaining operational efficiency and profitability over time, necessitating closer examination of underlying operational factors and strategic adjustments.