Phibro Animal Health Corporation (PAHC)

Cash conversion cycle

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Days of inventory on hand (DOH)	days	180.99	137.75	149.07	144.00	140.49
Days of sales outstanding (DSO)	days	64.20	60.78	61.02	64.51	64.32
Number of days of payables	days	56.28	44.33	39.66	53.12	44.40
Cash conversion cycle	days	188.90	154.20	170.42	155.39	160.41

June 30, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 180.99 + 64.20 – 56.28
= 188.90

The cash conversion cycle (CCC) of Phibro Animal Health Corporation experienced fluctuations over the period from June 30, 2021, to June 30, 2025. Initially, the CCC was recorded at 160.41 days in 2021, indicating the average time it takes for the company to convert its investments in inventory and other resources into cash flows from sales. This metric decreased slightly to 155.39 days in 2022, suggesting a marginal improvement in the company's working capital efficiency.

However, a notable increase occurred in 2023, with the CCC rising to 170.42 days. This indicates that the company began taking longer to convert its operations into cash, which could be associated with changes in receivables collection, inventory management, or payables policies.

In 2024, the CCC decreased again to 154.20 days, reflecting an improvement in operational efficiencies and potentially faster receivables collection or inventory turnover. Nonetheless, by June 2025, the CCC increased substantially to 188.90 days, marking a significant elongation of the company's cash conversion timeline. This increase suggests that the company experienced delays or inefficiencies in converting its working capital into cash, which could impact liquidity and operational flexibility.

Overall, the trend reveals fluctuations in the company's operational efficiency related to cash flow cycle management, with the most recent data indicating a substantial elongation of the cash conversion cycle. This escalation could be indicative of changing market conditions, supply chain challenges, or strategic shifts impacting receivables, inventory, or payables.