Phibro Animal Health Corporation (PAHC)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 5.86 6.00 6.33 6.41 5.87 6.26 6.28 6.62 5.62 5.80 6.17 6.06 5.67 5.89 6.33 6.42 6.33 5.40 5.52 5.62
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
Working capital turnover 2.50 2.37 2.39 2.32 2.34 2.28 2.30 2.38 2.49 2.52 2.57 2.46 2.49 2.64 2.57 2.66 2.72 2.96 2.73 2.61

Phibro Animal Health Corporation's activity ratios reflect the efficiency with which the company manages its assets and liabilities.

- Inventory turnover has remained relatively stable around 3 in recent quarters, indicating that the company is selling and replenishing its inventory at a consistent rate. The slight increase in inventory turnover from 2022 to 2024 suggests improved efficiency in managing its inventory levels.

- Receivables turnover has shown some fluctuations but generally remains above 5, indicating that the company is collecting its receivables in a timely manner. The increase in receivables turnover from 2021 to 2023 suggests improved efficiency in collecting outstanding payments from customers.

- Payables turnover has fluctuated over the quarters but generally remains above 8, indicating that the company is efficiently managing its payables. The decrease in payables turnover from 2021 to 2022 may suggest that the company is taking longer to pay its suppliers, which could impact its relationships with vendors.

- Working capital turnover has been relatively stable around 2.5 in recent quarters, indicating that the company efficiently utilizes its working capital to generate revenue. The consistency in working capital turnover suggests reliable management of the company's short-term assets and liabilities.

Overall, Phibro Animal Health Corporation's activity ratios suggest a reasonable level of efficiency in managing its inventory, receivables, payables, and working capital, which are crucial components of its operational performance and financial health.

Average number of days

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
Days of inventory on hand (DOH) days 98.53 109.17 112.77 109.68 110.64 115.71 122.39 130.41 132.33 144.68 139.22 139.06 140.49 140.24 145.42 138.50 132.08 116.23 126.94 132.63
Days of sales outstanding (DSO) days 62.23 60.81 57.70 56.98 62.15 58.32 58.13 55.12 64.97 62.99 59.14 60.19 64.32 61.93 57.65 56.83 57.70 67.60 66.17 64.93
Number of days of payables days 31.71 31.95 33.99 30.34 29.44 29.94 34.09 41.04 48.81 51.93 48.66 41.98 44.40 42.70 43.15 42.05 44.39 44.69 38.22 39.92

Phibro Animal Health Corporation's activity ratios show how efficiently the company manages its inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH): Phibro's inventory turnover has been fluctuating over the periods provided. In the latest period, the company had 98.53 days of inventory on hand, which indicates that on average, it takes approximately 98 days to sell its inventory. A lower number of days indicates a more efficient management of inventory.

2. Days of Sales Outstanding (DSO): Phibro's DSO has also varied over time. In the most recent period, the company had 62.23 days of sales outstanding, showing that it takes around 62 days to collect payments from customers. A lower DSO is generally preferred as it implies quicker cash conversion from sales.

3. Number of Days of Payables: Phibro's payable period has been fluctuating, with the latest period showing 31.71 days of payables. This indicates that the company takes approximately 32 days to pay its suppliers. A longer payable period may suggest favorable terms but could also indicate the company's stretching of payments.

Overall, Phibro's activity ratios suggest that the company may need to focus on improving its inventory turnover and possibly streamline its accounts receivable collection process to enhance its overall efficiency and cash flow management. Tracking these ratios over time can help identify trends and areas for improvement in the company's working capital management.

Long-term

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
Fixed asset turnover 4.89 4.78 4.74 4.94 4.91 5.06 5.12 5.27 5.65 5.58 5.69 5.58 5.39 5.32 5.31 5.47 5.40 5.72 5.62 5.75
Total asset turnover 1.01 0.99 0.98 0.99 0.99 0.99 0.99 1.00 1.00 0.99 1.04 1.02 0.99 0.99 0.99 1.02 1.02 1.05 1.03 1.03

The fixed asset turnover ratio for Phibro Animal Health Corporation has shown a consistent trend of fluctuating but generally maintaining a strong performance over the analyzed periods. The ratio has varied between 4.74 and 5.75, indicating that the company generates between approximately 4.74 to 5.75 in sales revenue for every dollar invested in fixed assets. This indicates efficient utilization of fixed assets to generate sales.

On the other hand, the total asset turnover ratio for the company has remained relatively stable, ranging between 0.98 and 1.05. The consistent values around 1.00 suggest that Phibro Animal Health Corporation effectively utilizes its total assets to generate sales revenue, with minimal fluctuations observed over the periods.

Overall, the analysis of long-term activity ratios for Phibro Animal Health Corporation demonstrates an effective utilization of both fixed and total assets in generating revenue, indicating efficiency and effectiveness in the company's asset management strategies.