Premier Inc (PINC)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,530,580 | 1,962,230 | 2,334,360 | 2,248,850 | 2,229,890 |
| ROE | 1.32% | 6.09% | 7.50% | 11.82% | 12.89% |
June 30, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $20,269K ÷ $1,530,580K
= 1.32%
The return on equity (ROE) for Premier, Inc. has experienced a notable downward trend over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the ROE was 12.89% as of June 30, 2021, indicating a relatively healthy level of profitability relative to shareholders' equity at that time. By June 30, 2022, the ROE declined to 11.82%, reflecting a modest decrease in the company's efficiency in generating profits from shareholders’ equity.
This downward trajectory continued more sharply over the subsequent years, with the ROE dropping to 7.50% as of June 30, 2023. The decline became more pronounced in the following year, reaching 6.09% by June 30, 2024. The most recent data point, as of June 30, 2025, shows a significant reduction to 1.32%.
This decreasing pattern suggests that Premier, Inc.'s ability to generate profits from its equity base has diminished considerably over this period. The decline may be attributable to various factors, including potential challenges in profit margins, increased expenses, strategic changes, or shifts in revenue streams. The sharp reduction in ROE in the later years indicates a potential deterioration in financial performance and efficiency, raising considerations regarding the company's profitability sustainability and return generation for shareholders.