Phibro Animal Health Corporation (PAHC)

Working capital turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	993,816	960,113	935,602	833,350	800,354
Total current assets	US$ in thousands	600,997	585,723	566,232	498,909	451,837
Total current liabilities	US$ in thousands	204,148	176,000	190,832	164,116	157,238
Working capital turnover		2.50	2.34	2.49	2.49	2.72

June 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $993,816K ÷ ($600,997K – $204,148K)
= 2.50

The working capital turnover ratio for Phibro Animal Health Corporation has shown a relatively stable trend over the past five years. The ratio provides insight into how efficiently the company is utilizing its working capital to generate revenue.

In 2024, the working capital turnover ratio stands at 2.50, indicating that for every dollar of working capital invested, the company generates $2.50 of revenue. This suggests that Phibro Animal Health Corporation has improved its efficiency in utilizing its working capital compared to the prior year.

While the ratio decreased slightly in 2023 to 2.34, it rebounded in 2024 to 2.50. This indicates that the company has managed to enhance its operational efficiency in utilizing its current assets and liabilities to drive revenue.

Looking at the trend over the five-year period, the working capital turnover ratio has been relatively consistent, ranging from 2.34 to 2.72. This stability suggests that Phibro Animal Health Corporation has maintained a consistent level of efficiency in managing its working capital over the years.

Overall, the working capital turnover ratio for Phibro Animal Health Corporation reflects a consistent and efficient use of working capital to generate revenue, indicating a healthy financial performance in terms of working capital management.