Phibro Animal Health Corporation (PAHC)

Inventory turnover

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
Cost of revenue (ttm) US$ in thousands 985,065 943,779 927,921 929,017 915,738 923,709 861,835 786,064 714,815 630,470 605,041 580,885 561,973 536,842 535,466 542,490 543,472 556,733 556,409 561,080
Inventory US$ in thousands 265,911 282,289 286,680 279,154 277,570 292,833 288,984 280,842 259,158 249,911 230,784 221,313 216,312 206,258 213,331 205,846 196,659 177,287 193,509 203,873
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

June 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $985,065K ÷ $265,911K
= 3.70

Inventory turnover is a key financial ratio that measures how efficiently a company is managing its inventory. A higher inventory turnover ratio indicates that a company is selling its inventory quickly and efficiently.

In the case of Phibro Animal Health Corporation, the inventory turnover ratio has fluctuated over the past few quarters, ranging from 2.51 to 3.70. The overall trend shows some variability but remains relatively stable over the periods analyzed.

The average inventory turnover ratio for Phibro Animal Health Corporation during this period is approximately 2.86, which means that on average, the company is able to sell and replace its inventory approximately 2.86 times within a year.

A closer look at the data reveals that there has been a gradual improvement in the inventory turnover ratio in recent quarters, indicating that the company may be managing its inventory more efficiently. However, it is important to continue monitoring this ratio to ensure sustained improvement in inventory management practices.

Overall, a consistent and moderately increasing trend in inventory turnover ratio suggests that Phibro Animal Health Corporation is effectively managing its inventory levels and turning them into sales at a reasonable pace.


Peer comparison

Jun 30, 2024

Jun 30, 2024