Premier Inc (PINC)
Return on assets (ROA)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 106,719 | 174,887 | 268,318 | 292,739 | 130,364 |
| Total assets | US$ in thousands | 3,401,450 | 3,371,490 | 3,357,130 | 3,522,900 | 2,948,520 |
| ROA | 3.14% | 5.19% | 7.99% | 8.31% | 4.42% |
June 30, 2024 calculation
ROA = Net income ÷ Total assets
= $106,719K ÷ $3,401,450K
= 3.14%
Premier Inc's return on assets (ROA) has fluctuated over the past five years, with a decreasing trend from 8.31% in June 2021 to 3.14% in June 2024. The ROA indicates the company's ability to generate profit relative to its total assets. A higher ROA is generally favorable as it suggests efficient asset utilization to generate earnings.
The decreasing trend in Premier Inc's ROA may raise concerns about its asset efficiency and profitability. It is essential for the company to effectively manage its assets to improve ROA and enhance overall financial performance. Further analysis of the underlying factors influencing this trend, such as changes in revenue, expenses, and asset management strategies, is necessary to understand the reasons behind the fluctuating ROA.
Peer comparison
Jun 30, 2024