Phibro Animal Health Corporation (PAHC)

Inventory turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cost of revenue	US$ in thousands	896,273	704,587	679,652	656,900	561,973
Inventory	US$ in thousands	444,425	265,911	277,570	259,158	216,312
Inventory turnover		2.02	2.65	2.45	2.53	2.60

June 30, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $896,273K ÷ $444,425K
= 2.02

The inventory turnover ratio for Phibro Animal Health Corporation over the specified periods indicates fluctuations in inventory management efficiency. As of June 30, 2021, the ratio stood at 2.60, reflecting the number of times inventory was sold and replaced within the fiscal year. This slightly decreased to 2.53 by June 30, 2022, and further declined to 2.45 by June 30, 2023, suggesting a gradual slowdown in inventory turnover and potentially longer holding periods for inventory during this period.

However, by June 30, 2024, the ratio increased to 2.65, surpassing previous levels, which may indicate improved inventory management and faster inventory turnover. Conversely, by June 30, 2025, the ratio dropped notably to 2.02, signaling a significant reduction in inventory turnover efficiency. This declining trend could imply challenges such as increased inventory levels relative to sales, slower sales cycles, or inventory obsolescence.

Overall, the data illustrates a period of relative stability in inventory management from 2021 through 2023, followed by a marked decline in 2025. The fluctuations suggest varying inventory management performance, with the most recent year reflecting decreased efficiency in inventory turnover.