Premier Inc (PINC)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 20,269 | 62,510 | -4,753 | 145,567 | 119,544 | 80,331 | 167,327 | 177,071 | 175,026 | 183,466 | 175,080 | 186,579 | 265,867 | 285,513 | 295,419 | 263,843 | 310,679 | 287,428 | 277,266 | 269,782 |
| Total stockholders’ equity | US$ in thousands | 1,530,580 | 1,522,980 | 1,717,890 | 1,954,180 | 1,962,230 | 1,923,300 | 2,390,210 | 2,352,700 | 2,334,360 | 2,335,790 | 2,306,070 | 2,261,420 | 2,248,850 | 2,233,600 | 2,278,800 | 2,328,090 | 2,229,890 | 2,214,570 | 2,172,420 | 2,134,580 |
| 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% |
June 30, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $20,269K ÷ $1,530,580K
= 1.32%
The analysis of Premier Inc’s return on equity (ROE) over the specified period reveals significant fluctuations from September 2020 through June 2025. Initially, the ROE demonstrated a modest upward trend, rising from 12.64% in September 2020 to a peak of 13.93% in June 2021, indicating improved profitability relative to shareholders' equity during this period.
Subsequently, a decline is observed, with ROE decreasing to 11.33% by September 2021 and then recovering slightly to 12.96% in December 2021. Throughout 2022, the ROE continued a gradual decline, falling from 12.78% in March 2022 to 8.25% by September 2022 and further to 7.59% in December 2022.
The downward trend persists into 2023, with ROE decreasing to 7.85% in March and 7.50% in June, before slightly increasing again to 7.53% in September. This indicates a sustained reduction in profitability margins relative to equity, potentially influenced by operational or market factors impacting net income or equity base.
In early 2024, the ROE experiences a sharp decline to 4.18% in March, followed by a modest recovery to 6.09% in June and 7.45% in September. However, a notable negative figure appears in December 2024, with the ROE dropping to -0.28%, implying a period of net losses or diminished profitability significantly impacting shareholders' returns.
Into 2025, the ROE shows some recovery, registering at 4.10% in March and remaining low at 1.32% in June. This pattern suggests ongoing challenges in maintaining consistent profitability levels relative to equity. The overall trend from the peak in mid-2021 through mid-2025 reflects substantial volatility, with periods of marginal profitability followed by sharp declines, including a rare negative value indicating loss to equity holders.
This fluctuation in ROE underscores the variability in Premier Inc’s ability to generate earnings from shareholders’ equity across the observed period. Factors influencing this pattern could include operational performance, strategic adjustments, external market conditions, or changes in the firm’s capital structure.