Phibro Animal Health Corporation (PAHC)

Payables 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
Payables	US$ in thousands	138,201	85,567	73,853	95,596	68,362
Payables turnover		6.49	8.23	9.20	6.87	8.22

June 30, 2025 calculation

Payables turnover = Cost of revenue ÷ Payables
= $896,273K ÷ $138,201K
= 6.49

The payables turnover ratios for Phibro Animal Health Corporation over the specified periods demonstrate fluctuations that reflect changes in the company's accounts payable management and its payment practices towards suppliers.

In June 2021, the payables turnover stood at 8.22, indicating the company paid its suppliers approximately eight times during the fiscal year. This ratio suggests a relatively prompt payment schedule relative to the accounts payable balance during that period.

By June 2022, the ratio decreased to 6.87, signifying a reduction in the frequency of payments made to suppliers within the year. This decline implies that the company either extended its payment terms or delayed payments, possibly to improve cash flow or due to changes in supplier agreements.

In June 2023, the ratio increased notably to 9.20, indicating a turnaround in payment activity with more frequent payments or a reduction in accounts payable balances. This improvement may reflect stricter payment policies, increased operational efficiency, or strategic vendor management.

However, in June 2024, the ratio declined slightly to 8.23, signaling a slight moderation but still maintaining a high turnover level compared to earlier years. This could imply a slight relaxation of payment frequency or a rise in accounts payable balances, possibly due to changes in supply chain or payment terms.

Finally, in June 2025, the payables turnover dropped further to 6.49. This decline suggests that the company paid its suppliers less frequently than in recent years, potentially indicating extended payment cycles, strategic negotiations for better terms, or managing liquidity constraints.

Overall, the trend shows variability in Phibro Animal Health’s accounts payable management, with a notable peak in June 2023 followed by a downward trend. These patterns reflect adaptive payment strategies that may be driven by cash flow considerations, operational priorities, or supplier negotiations.