Premier Inc (PINC)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,962,230 | 2,334,360 | 2,248,850 | 2,229,890 | 1,859,570 |
| ROE | 5.44% | 7.49% | 11.93% | 13.13% | 7.01% |
June 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $106,719K ÷ $1,962,230K
= 5.44%
Premier Inc's return on equity (ROE) has exhibited a declining trend over the past five years. The ROE decreased from 7.01% in 2020 to 5.44% in 2024. This suggests that the company's ability to generate profits from its shareholder's equity has been weakening over time. The declining ROE may indicate inefficiencies in the utilization of equity capital or a decrease in profitability relative to shareholder investments. Further investigation into the company's financial performance, operational efficiency, and strategic direction may be warranted to address the decline in ROE and improve overall financial health.
Peer comparison
Jun 30, 2024