Premier Inc (PINC)
Financial leverage ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,097,070 | 3,401,450 | 3,371,490 | 3,357,130 | 3,522,900 |
| Total stockholders’ equity | US$ in thousands | 1,530,580 | 1,962,230 | 2,334,360 | 2,248,850 | 2,229,890 |
| Financial leverage ratio | 2.02 | 1.73 | 1.44 | 1.49 | 1.58 |
June 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,097,070K ÷ $1,530,580K
= 2.02
The financial leverage ratio of Premier Inc. demonstrates a pattern of fluctuation over the four-year period from June 30, 2021, to June 30, 2025. At the end of fiscal year 2021, the ratio stood at 1.58, indicating a moderate level of leverage. This ratio declined slightly in subsequent years, reaching 1.49 in June 2022 and further decreasing to 1.44 in June 2023, which suggests a period of reduced financial leverage or decreased reliance on debt financing during this timeframe.
However, a marked shift occurs starting in June 2024, when the ratio increases significantly to 1.73. This upward movement continues into June 2025, reaching 2.02, indicating a substantial increase in the company's leverage. The rising trend in the latter years reflects heightened financial risk due to increased debt levels relative to equity or assets.
Overall, the initial years depict a decreasing leverage position, possibly reflecting efforts to strengthen the balance sheet or deleverage strategies. In contrast, the escalation in the last two years signals a shift towards greater financial leverage, which could be associated with growth initiatives, acquisitions, or other strategic financing activities. Such an increase warrants ongoing monitoring, as higher leverage levels can amplify both potential returns and financial risk.
Peer comparison
Jun 30, 2025