Phibro Animal Health Corporation (PAHC)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	896,273	813,971	755,065	719,001	705,664	697,661	683,443	679,377	679,652	678,069	675,929	670,708	656,820	630,520	605,091	580,935	562,023	536,823	535,447	542,471
Inventory	US$ in thousands	444,425	448,390	427,224	272,556	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
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

June 30, 2025 calculation

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

The inventory turnover ratios for Phibro Animal Health Corporation over the specified periods demonstrate a pattern of relative stability with some fluctuations. From September 30, 2020, through March 31, 2022, the ratios remained consistently within a narrow range of approximately 2.51 to 2.64, indicating steady inventory management and a consistent rate at which inventory is sold and replaced.

Between March 31, 2022, and September 30, 2022, there is a notable decline from 2.52 to 2.39, signaling a slight decrease in inventory turnover efficiency. This downward trend continues into December 2022 and through much of 2023, with ratios generally hovering around the low 2.3s to 2.4s. Specifically, the ratio dips to a low of 1.77 on December 31, 2024, which signifies a substantial slowdown in inventory turnover, implying that inventory is either accumulating or being converted into sales at a slower rate during this period.

From March 31, 2025, onwards, the ratios show signs of recovery, rising back to approximately 2.02 by June 30, 2025. This increase indicates a gradual improvement in inventory management efficiency.

Overall, the trend indicates that the company's inventory turnover remained relatively stable in the initial years, experienced a decline beginning in late 2022, reaching a significant low at the end of 2024, followed by a modest rebound in mid-2025. The low point suggests periods of slower sales activity or higher inventory accumulation, whereas the recovery points to improved sales performance or better inventory management practices.