Premier Inc (PINC)
Return on total capital
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 127,972 | 78,788 | 220,083 | 242,556 | 242,093 | 262,246 | 256,504 | 246,302 | 260,073 | 270,815 | 280,181 | 272,221 | 256,917 | 260,397 | 296,019 | 346,548 | 373,620 | 391,546 | 377,702 | 357,932 |
| Long-term debt | US$ in thousands | 0 | 25,555 | 50,994 | 76,317 | 102,257 | 127,622 | 152,596 | 177,454 | 203,468 | 228,094 | 253,069 | 280,050 | 304,328 | 328,489 | 352,950 | 375,770 | 4,640 | 4,828 | 6,834 | 7,198 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,859,570 | 1,799,880 | 1,671,490 | 1,690,220 |
| Return on total capital | 6.52% | 4.04% | 9.02% | 9.99% | 9.94% | 10.65% | 10.43% | 10.10% | 10.61% | 11.00% | 11.07% | 10.44% | 10.14% | 10.24% | 11.72% | 13.80% | 20.04% | 21.70% | 22.50% | 21.09% |
June 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $127,972K ÷ ($0K + $1,962,230K)
= 6.52%
Premier Inc's return on total capital has shown some fluctuations over the past few quarters. The return on total capital was relatively stable around 10% for several quarters, with a peak at 13.80% in March 2020. However, there was a significant increase in return on total capital to 22.50% in December 2019, which was sustained at similar levels in the subsequent quarters.
The return on total capital decreased in the most recent quarter to 6.52%, which is a notable decline compared to the previous quarters. This decrease raises some concerns about the company's efficiency in generating returns relative to its total capital employed. Further analysis of the factors contributing to this decline would be necessary to understand the underlying reasons and assess the company's ongoing financial performance and capital utilization.
Peer comparison
Jun 30, 2024