Phibro Animal Health Corporation (PAHC)

Payables 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
Payables	US$ in thousands	85,567	82,613	86,410	77,216	73,853	75,768	80,487	88,379	95,596	89,696	80,663	66,805	68,362	62,803	63,306	62,497	66,091	68,162	58,263	61,372
Payables turnover		11.51	11.42	10.74	12.03	12.40	12.19	10.71	8.89	7.48	7.03	7.50	8.70	8.22	8.55	8.46	8.68	8.22	8.17	9.55	9.14

June 30, 2024 calculation

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

Payables turnover is an important financial ratio that measures how efficiently a company is managing its accounts payable by indicating how many times a company pays its suppliers within a specific period. A higher payables turnover ratio suggests that the company is paying its suppliers more frequently, which can indicate good financial health and effective cash flow management.

Analyzing the payables turnover of Phibro Animal Health Corporation over the past few quarters reveals some interesting trends. The payables turnover ratio has been fluctuating over the period, ranging from a low of 7.03 to a high of 12.40. In general, the trend shows an increasing pattern from late 2019 to mid-2020, reaching a peak in mid-2023, before starting to decline again.

The recent value of payables turnover of 11.51 as of June 30, 2024, indicates that Phibro Animal Health Corporation is paying its suppliers approximately 11.51 times within the year, which suggests the company is managing its payables effectively. However, it is important to note that the ratio can vary depending on the industry norms and the company's payment terms with its suppliers.

Overall, the company's payables turnover ratio reflects a balance between maintaining good relationships with suppliers through timely payments and efficiently managing cash flow. Analyzing this ratio alongside other financial metrics can provide a more comprehensive understanding of the company's financial health and operational efficiency.