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Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Premier's annualizedNet Income for the quarter that ended in Sep. 2025 was $70 Mil. Premier's average total tangible assets for the quarter that ended in Sep. 2025 was $1,932 Mil. Therefore, Premier's annualized Return-on-Tangible-Asset for the quarter that ended in Sep. 2025 was 3.64%.
The historical rank and industry rank for Premier's Return-on-Tangible-Asset or its related term are showing as below:
PINC'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -1.66 Med: 8.56 Max: 15.48
Current: -1.66
During the past 13 years, Premier's highest Return-on-Tangible-Asset was 15.48%. The lowest was -1.66%. And the median was 8.56%.
PINC's Return-on-Tangible-Asset is not ranked
in the Healthcare Providers & Services industry.
Industry Median: 2.605
vs PINC: -1.66
Premier (NAS:PINC) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Premier Return-on-Tangible-Asset Related Terms
Premier Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Premier's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PINC vs TXG, HTFL, PRVA: Return-on-Tangible-Asset Comparison
For the Health Information Services subindustry, Premier's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Premier Return-on-Tangible-Asset vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Premier's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Premier's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Sep. 2025) net income data.
What does a Return-on-Tangible-Asset of 3.64% mean?
Premier (PINC) has a Return-on-Tangible-Asset of 3.64% as of Sep. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Premier and its competitors. This is 57% below median its historical median of 8.56.
Is Premier's Return-on-Tangible-Asset too high?
Premier's current Return-on-Tangible-Asset of 3.64% is 57% below median its 10-year median of 8.56. The Healthcare Providers & Services industry median Return-on-Tangible-Asset is 2.61. Premier's value of 3.64% is 39.7% above this industry median. Overall, Premier has a GF Score™ of 54/100, reflecting its overall financial health beyond just this single metric.
How does Premier's Return-on-Tangible-Asset compare to TXG and HTFL?
Premier's Return-on-Tangible-Asset of 3.64% can be compared against companies in the Healthcare Providers & Services industry. The industry median Return-on-Tangible-Asset is 2.61. Premier's value of 3.64% is 39.7% above this benchmark. While the company's 10-year median is 8.56 vs. the industry median of 2.61, Premier has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Healthcare Providers & Services company?
The median Return-on-Tangible-Asset among Healthcare Providers & Services companies is 2.61, based on 680 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Premier's current Return-on-Tangible-Asset of 3.64% is 39.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Premier and its competitors. For the Healthcare Providers & Services industry, the median Return-on-Tangible-Asset is 2.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Premier's current Return-on-Tangible-Asset is 3.64%, which is 57% below median its own 10-year median of 8.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Premier stock overvalued right now?
Premier (PINC) has a current Return-on-Tangible-Asset of 3.64%. The stock's GF Value™ is $27.61, compared to a current price of $49.95 — trading 80.9% above its estimated fair value. The current Return-on-Tangible-Asset is 3.64%, which is 57% below median its 10-year median of 8.56 and 39.7% above the Healthcare Providers & Services industry median of 2.61. Premier's overall GF Score™ is 54/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Premier (PINC), the current Return-on-Tangible-Asset is 3.64% as of Sep. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Premier (PINC) Overvalued in 2026?
Based on GuruFocus' analysis, Premier stock appears to be overvalued.
The current stock price of $49.95 is trading 80.9% above its estimated GF Value™ of $27.61.
Key valuation signals for PINC:
Return-on-Tangible-Asset: 3.64% (57% below median its 10-year median of 8.56)
GF Value™: $27.61 vs. price of $49.95 (80.9% above fair value)
Industry Position: 39.7% above the Healthcare Providers & Services median
No single metric tells the full story. See the PINC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Premier Inc is a Charlotte, North Carolina-based technology-driven healthcare improvement company, uniting an alliance of United States (U.S.) hospitals, health systems, and other providers and organizations to transform healthcare. The company's revenue is all sourced domestically and is reported in two business segments: the supply chain services and the consulting and technology platform of performance services. It generates the majority of its revenue from the supply chain services segment.
54GF Score
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Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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