Phibro Animal Health Corporation (PAHC)

Days of inventory on hand (DOH)

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
Inventory turnover 2.02 1.82 1.77 2.64 2.65 2.47 2.38 2.43 2.45 2.32 2.34 2.39 2.53 2.52 2.62 2.62 2.60 2.60 2.51 2.64
DOH days 180.99 201.07 206.52 138.36 137.54 147.69 153.10 149.98 149.07 157.63 156.05 152.83 144.02 144.67 139.21 139.05 140.48 140.24 145.42 138.50

June 30, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.02
= 180.99

The analysis of Phibro Animal Health Corporation's days of inventory on hand (DOH) over the specified periods reveals a pattern characterized by fluctuations within a relatively narrow range initially, followed by a progressive increase, and subsequently a notable fluctuation in recent periods.

Between September 30, 2020, and December 31, 2021, the DOH remained fairly stable, fluctuating modestly around approximately 138 to 145 days. Specifically, the figure was 138.50 days at the end of September 2020, rising gradually to 145.42 days by the end of December 2020, and maintained a range from about 139 to 144 days through March 31, 2022.

From the third quarter of 2022 onward, there was a discernible upward trend: the DOH increased from approximately 153 days at September 30, 2022, to a peak of 156.05 days at the end of December 2022. This upward movement persisted into the first quarter of 2023, reaching 157.63 days, indicating a lengthening of inventory holding periods.

The latter part of 2023 exhibited some stabilization with the DOH fluctuating slightly around 149 to 154 days. Notably, as of September 30, 2023, the DOH was 149.98 days, and it remained comparable at 153.10 days by December 31, 2023. In the first half of 2024, a decline was observed, with the DOH decreasing to approximately 147.69 days at the end of March 2024 and further to 137.54 days at June 30, 2024.

However, a significant spike occurred in the third quarter of 2024, where the DOH surged to 206.52 days, marking a substantial increase compared to previous periods. This trend persisted into the first half of 2025, with the figure at 201.07 days in March and then decreasing somewhat to 180.99 days at June 30, 2025, yet remaining elevated relative to earlier levels.

Overall, the data indicates a trend of increasing inventory days beginning in late 2022 through mid-2024, with notable peaks towards the end of 2024 and early 2025. The recent periods suggest significant variability, reflecting potential shifts in inventory management practices, supply chain dynamics, or product demand cycles. The substantial rise in DOH during late 2024 represents a potential area for operational review, as excessively high inventory levels can impact liquidity and operational efficiency.