Phibro Animal Health Corporation (PAHC)

Payables 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
Payables	US$ in thousands	138,201	131,622	99,445	86,528	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
Payables turnover		6.49	6.18	7.59	8.31	8.25	8.44	7.91	8.80	9.20	8.95	8.40	7.59	6.87	7.03	7.50	8.70	8.22	8.55	8.46	8.68

June 30, 2025 calculation

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

The payables turnover ratio of Phibro Animal Health Corporation demonstrates notable fluctuations over the observed period from September 2020 through June 2025. Historically, the ratio initiated at 8.68 times as of September 2020 and experienced a slight decline to 8.46 by December 2020, followed by a marginal increase to 8.55 in March 2021. During this period, the ratio maintained relative stability, indicating consistent payment practices toward suppliers.

Entering 2022, the ratio decreased more noticeably, dropping to 7.03 by March 2022, and further to 6.87 by June 2022. This downward trend persisted into September 2022 at 7.59, though it remained below earlier levels, suggesting a possible extension in the time taken to settle payables or shifts in supplier credit terms. Subsequently, an upward correction was observed, with the ratio increasing to 8.40 by December 2022 and further rising to 8.95 in March 2023, reaching its peak within this period. This indicates a tendency to settle payables more quickly or an adjustment in credit terms favoring faster payments.

The ratio sustained an increasing trajectory through mid-2023, attaining 9.20 in June 2023, before slightly declining to 8.80 by September 2023. The downward trend continued into late 2023 and early 2024, with ratios of 7.91 by December 2023, 8.44 in March 2024, and 8.25 in June 2024. These fluctuations may reflect changes in payment strategies or supplier relationships during this period.

Most recently, the ratio stabilized around 8.31 in September 2024, then modestly declined to 7.59 in December 2024. The subsequent months depict further decreases, with the ratio reaching 6.18 in March 2025 and slightly increasing to 6.49 by June 2025. This downward trend toward the latter part of the period suggests a trend of extending payable periods or altered payment policies.

Overall, the payables turnover ratio exhibits a pattern of oscillation between periods of relatively high turnover—indicating efficient payment cycles—and lower ratios, which may correspond with strategic extensions of payable terms. The observed fluctuations may be influenced by operational, strategic, or external factors such as supplier negotiations, liquidity management, or industry-wide payment practices.