Premier Inc (PINC)
Return on total capital
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 115,272 | 127,972 | 264,468 | 338,042 | 262,605 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,530,580 | 1,962,230 | 2,334,360 | 2,248,850 | 2,229,890 |
| Return on total capital | 7.53% | 6.52% | 11.33% | 15.03% | 11.78% |
June 30, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $115,272K ÷ ($—K + $1,530,580K)
= 7.53%
The analysis of Premier Inc.'s return on total capital over the specified period reveals notable fluctuations in performance. As of June 30, 2021, the return on total capital stood at 11.78%, indicating a moderate level of efficiency in generating profits relative to the total capital employed. The subsequent year, June 30, 2022, experienced an increase to 15.03%, reflecting a significant improvement in the company's ability to utilize its capital effectively to generate returns.
However, this upward trend was not sustained. By June 30, 2023, the return declined to 11.33%, nearing the levels observed in 2021, suggesting a potential reduction in operational efficiency or profitability margins during this period. The decline continued more sharply in 2024, with the return decreasing to 6.52%, marking a substantial reduction in the company's capital efficiency. The most recent data for June 30, 2025, shows a slight recovery to 7.53%, but this remains well below the peak achieved in 2022.
Overall, the pattern indicates that Premier Inc. experienced a notable improvement in the early part of the period, followed by a significant decline in the subsequent years. The declining trend from 2022 onward suggests potential challenges in sustaining operational efficiency or profitability, which could warrant further investigation into underlying factors affecting the company's performance.
Peer comparison
Jun 30, 2025