Premier Inc (PINC)
Return on assets (ROA)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 20,269 | 119,544 | 175,026 | 265,867 | 287,522 |
| Total assets | US$ in thousands | 3,097,070 | 3,401,450 | 3,371,490 | 3,357,130 | 3,522,900 |
| ROA | 0.65% | 3.51% | 5.19% | 7.92% | 8.16% |
June 30, 2025 calculation
ROA = Net income ÷ Total assets
= $20,269K ÷ $3,097,070K
= 0.65%
The analysis of Premier Inc’s Return on Assets (ROA) over the period from June 30, 2021, to June 30, 2025, indicates a consistent declining trend. Initially, the ROA stood at 8.16% in 2021, reflecting a relatively efficient utilization of assets to generate net income. Over the subsequent two years, this figure experienced a slight reduction, decreasing to 7.92% in 2022, which suggests a marginal decline in asset efficiency.
However, the notable deterioration becomes apparent from 2023 onward, with the ROA declining sharply to 5.19% and further decreasing to 3.51% in 2024. This continuous decline signifies that the company’s ability to efficiently convert its assets into net income has been weakening over this period. The trend culminates in the 2025 figure of 0.65%, illustrating a substantial erosion of asset profitability.
The persistent downward trajectory in ROA may imply several underlying factors, including potential operational challenges, increased expenses, or reduced profit margins impacting overall profitability. The significant decrease from over 8% in 2021 to less than 1% in 2025 suggests a deterioration in financial performance efficiency, warranting further investigation into the company’s revenue streams, cost management, and asset utilization strategies during this period.