Phibro Animal Health Corporation (PAHC)

Days of sales outstanding (DSO)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Receivables turnover		5.86	5.87	5.62	5.67	6.33
DSO	days	62.23	62.15	64.97	64.32	57.70

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.86
= 62.23

The Days Sales Outstanding (DSO) for Phibro Animal Health Corporation has shown a slight fluctuation over the past five years. In the most recent fiscal year ending June 30, 2024, the DSO was 62.23 days, slightly higher compared to the previous year's DSO of 62.15 days.

Despite the minor increase in DSO, it is worth noting that the company has been able to maintain relatively consistent DSO levels over the five-year period, with fluctuations within a relatively narrow range. This indicates that Phibro Animal Health Corporation has been efficient in collecting revenue from its sales within a reasonable timeframe.

The increase in DSO from 2020 to 2021 followed by a subsequent decline in 2022 suggests potential changes in the company's accounts receivable management or sales strategy during those periods. However, the recent stability in DSO in the last two years may indicate improved efficiency in collecting receivables or continued effective credit management practices.

Overall, the trend of DSO for Phibro Animal Health Corporation demonstrates a reasonably effective management of accounts receivable and highlights the consistency in the company's ability to convert sales into cash. Continued monitoring of DSO trends and further analysis of underlying factors impacting receivables could provide additional insights into the company's financial performance and working capital management.