Premier Inc (PINC)
Interest coverage
| 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 |
| Interest expense (ttm) | US$ in thousands | 4,396 | 7,107 | 9,613 | 11,806 | 14,470 | 14,436 | 12,971 | 11,213 | 11,142 | 11,687 | 8,883 | 9,408 | 8,739 | 6,981 | 16,947 | 13,908 | 12,265 | 10,958 | 2,073 | 2,573 |
| Interest coverage | 29.11 | 11.09 | 22.89 | 20.55 | 16.73 | 18.17 | 19.78 | 21.97 | 23.34 | 23.17 | 31.54 | 28.94 | 29.40 | 37.30 | 17.47 | 24.92 | 30.46 | 35.73 | 182.20 | 139.11 |
June 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $127,972K ÷ $4,396K
= 29.11
The interest coverage ratio for Premier Inc has exhibited volatility over the past few quarters. As of June 30, 2024, the interest coverage ratio stands at 29.11, indicating that the company is generating significantly more operating income to cover its interest expenses.
This ratio has fluctuated over the analyzed periods, with a notable peak in the March 31, 2020 quarter at 182.20, possibly attributed to fluctuations in operating income and interest expenses. However, the interest coverage ratio has generally remained at healthy levels, reflecting the company's ability to comfortably meet its interest obligations.
The consistent maintenance of a relatively high interest coverage ratio suggests that Premier Inc has a strong ability to service its debt through its operating profits, which is a positive indicator for investors and creditors assessing the company's financial health and risk level.
It is important for stakeholders to closely monitor Premier Inc's interest coverage ratio as a key indicator of the company's financial stability and capacity to handle debt obligations in the future.
Peer comparison
Jun 30, 2024