Premier Inc (PINC)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 20,374 | 71,005 | -51,577 | 106,939 | 127,972 | 82,896 | 221,568 | 248,645 | 256,884 | 271,799 | 265,800 | 259,502 | 338,042 | 349,914 | 361,460 | 339,947 | 261,486 | 289,629 | 323,328 | 378,902 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 1.33% | 4.66% | -3.00% | 5.47% | 6.52% | 4.31% | 9.27% | 10.57% | 11.00% | 11.64% | 11.53% | 11.48% | 15.03% | 15.67% | 15.86% | 14.60% | 11.73% | 13.08% | 14.88% | 17.75% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $20,374K ÷ ($—K + $1,530,580K)
= 1.33%
The return on total capital for Premier Inc exhibits notable fluctuations over the period analyzed. Starting at a high of 17.75% as of September 30, 2020, the metric declined consistently through the subsequent quarters, reaching a trough of 4.31% by March 31, 2024. This downward trend indicates diminishing efficiency in generating returns from the company's total capital over this period, which might suggest increased capital costs, reduced operating efficiency, or shifts in strategic focus.
Following this low, there was a modest recovery in the subsequent quarters, with the return rising to 6.52% by June 30, 2024, and further to 5.47% as of September 30, 2024. However, the metric then declined sharply into negative territory, registering at -3.00% on December 31, 2024, indicating a period where the company’s total capital was not generating positive returns, possibly due to operational losses, increased expenses, or adverse market conditions.
In the subsequent quarters, a recovery trend emerged, with the return on total capital improving to 4.66% as of March 31, 2025, and a slight decrease to 1.33% by June 30, 2025. This indicates some positive development in capital utilization, although the overall trend remains subdued relative to earlier periods.
Overall, the data reveals a significant decline in Premier Inc’s return on total capital from its peak in late 2020 to negative territory at the end of 2024, with partial recovery thereafter. The fluctuation suggests variability in operational efficiency, profitability, and possibly strategic or market challenges impacting the company's capacity to generate consistent returns on its invested capital.
Peer comparison
Jun 30, 2025