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.