Phibro Animal Health Corporation (PAHC)

Days of inventory on hand (DOH)

		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
Inventory turnover		3.70	3.34	3.24	3.33	3.30	3.15	2.98	2.80	2.76	2.52	2.62	2.62	2.60	2.60	2.51	2.64	2.76	3.14	2.88	2.75
DOH	days	98.53	109.17	112.77	109.68	110.64	115.71	122.39	130.41	132.33	144.68	139.22	139.06	140.49	140.24	145.42	138.50	132.08	116.23	126.94	132.63

June 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.70
= 98.53

The days of inventory on hand (DOH) for Phibro Animal Health Corporation have shown varying trends over the past few years. From December 2019 to March 2022, there seems to be an increasing trend in DOH, peaking at 144.68 days in March 2022. This may indicate that the company was holding inventory for a longer period, which could tie up capital and potentially result in higher carrying costs.

However, from March 2022 onwards, there appears to be a slight decrease in DOH, with fluctuations observed in the subsequent quarters. Despite the fluctuations, the DOH values have generally remained above 100 days, indicating that Phibro Animal Health Corporation has been holding inventory for an extended period.

Overall, a high DOH value suggests that the company may be facing challenges in managing its inventory efficiently, such as slow-moving or obsolete inventory, inadequate demand forecasting, or supply chain issues. It could also suggest a need for the company to streamline its inventory management processes to optimize working capital and improve overall operational efficiency.