Premier Inc (PINC)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,119,170 | 3,071,790 | 3,142,380 | 3,313,600 | 3,428,600 | 3,363,730 | 3,832,530 | 3,849,570 | 3,371,490 | 3,512,520 | 3,539,390 | 3,419,740 | 3,357,130 | 3,515,460 | 3,451,460 | 3,566,920 | 3,522,900 | 3,681,960 | 3,510,800 | 3,441,580 |
| 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 |
| Financial leverage ratio | 2.04 | 2.02 | 1.83 | 1.70 | 1.75 | 1.75 | 1.60 | 1.64 | 1.44 | 1.50 | 1.53 | 1.51 | 1.49 | 1.57 | 1.51 | 1.53 | 1.58 | 1.66 | 1.62 | 1.61 |
June 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,119,170K ÷ $1,530,580K
= 2.04
The financial leverage ratio of Premier Inc exhibits notable fluctuations over the analyzed period, reflecting evolving capital structure and debt management strategies. From September 30, 2020, to June 30, 2021, the ratio remained relatively stable, hovering around 1.61 to 1.66, indicating moderate leverage levels during this timeframe. Subsequently, the ratio demonstrated a gradual decline, reaching approximately 1.49 by June 30, 2022, which suggests a reduction in financial leverage and potentially a shift toward lower reliance on debt financing.
However, starting in late 2022 and progressing into 2023 and 2024, the leverage ratio shows an upward trend, rising from approximately 1.53 at the end of 2022 to 1.83 by the end of 2024. This increase indicates that the company is leveraging more relative to its equity base, which could imply expanded borrowing activities or increased debt obligations.
Particularly noteworthy are the pronounced increases toward the end of the observed period, with the ratio reaching 2.02 by March 2025. Such a rise suggests a significant increase in financial leverage, which could reflect strategic decisions to fund growth initiatives, acquisitions, or other capital expenditures through debt issuance.
Overall, the trend in Premier Inc’s financial leverage ratio portrays a period of stabilization followed by strategic augmentation of leverage, with the ratio moving from moderate levels to higher leverage positions over the last few years. This increasing trend warrants attention for its implications on the company's risk profile, interest obligations, and capacity to service debt, especially as leverage approaches or surpasses certain industry norms.
Peer comparison
Jun 30, 2025