Phibro Animal Health Corporation (PAHC)

Working capital 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
Revenue (ttm) US$ in thousands 1,296,215 1,190,682 1,106,080 1,046,762 1,017,630 999,515 981,965 976,668 977,889 978,140 972,086 960,152 942,296 907,296 879,406 852,843 833,372 798,972 797,982 805,845
Total current assets US$ in thousands 810,606 776,018 746,153 570,767 600,997 597,180 586,586 584,424 585,723 585,483 581,689 570,080 566,232 546,477 508,610 498,630 498,909 471,718 477,167 464,282
Total current liabilities US$ in thousands 293,473 266,481 233,250 176,894 204,148 189,072 187,735 172,355 176,000 165,308 167,569 172,499 190,832 187,102 166,628 152,586 164,116 168,891 166,903 160,952
Working capital turnover 2.51 2.34 2.16 2.66 2.56 2.45 2.46 2.37 2.39 2.33 2.35 2.41 2.51 2.52 2.57 2.46 2.49 2.64 2.57 2.66

June 30, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,296,215K ÷ ($810,606K – $293,473K)
= 2.51

The analysis of Phibro Animal Health Corporation's working capital turnover ratio over the period from September 2020 through June 2025 reveals a general trend of relative stability with minor fluctuations. Initially, the ratio hovered around 2.66 in September 2020 and gradually exhibited slight decreases, reaching a low of 2.16 by December 2024. This decline suggests a potential increase in working capital relative to sales or a decrease in sales efficiency in utilizing working capital assets.

Notably, the ratio experienced some periods of recovery, such as an increase to 2.46 in December 2024 and further to 2.51 in June 2025, indicating some improvement in the efficiency of working capital utilization in recent periods. The ratio's narrow fluctuations and overall stability imply that the company's management has maintained consistent operational efficiency concerning working capital management. The relatively stable ratios, with minor dips and recoveries, suggest that Phibro Animal Health's asset and liability management have been closely aligned with its revenue-generating activities, maintaining a steady cycle of working capital utilization over the analyzed period.