Phibro Animal Health Corporation (PAHC)

Payables turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cost of revenue	US$ in thousands	985,065	915,738	872,199	561,973	543,472
Payables	US$ in thousands	85,567	73,853	95,596	68,362	66,091
Payables turnover		11.51	12.40	9.12	8.22	8.22

June 30, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $985,065K ÷ $85,567K
= 11.51

The payables turnover ratio for Phibro Animal Health Corporation has shown varying trends over the past five years. The ratio indicates how efficiently the company is managing its accounts payable. A higher payables turnover ratio typically suggests that the company is paying off its suppliers more quickly.

In the most recent fiscal year ending on June 30, 2024, the payables turnover ratio was 11.51, which indicates an improvement compared to the previous year's ratio of 12.40. This increase could imply that the company has been able to settle its payables more swiftly in the most recent period.

Looking at the trend over the past five years, there was a significant increase in the payables turnover ratio from 2021 to 2022, jumping from 8.22 to 9.12. This could suggest that the company made efforts to enhance its payables management during that period. However, the ratio remained consistent in 2022 and 2020 at 8.22.

Overall, the fluctuation in the payables turnover ratio for Phibro Animal Health Corporation indicates that the company's efficiency in managing its accounts payable has been somewhat inconsistent over the past five years. Further analysis and comparison with industry benchmarks may provide additional insights into the company's financial performance and operational effectiveness.