Phibro Animal Health Corporation (PAHC)

Cash conversion cycle

		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
Cash conversion cycle	days	129.06	138.04	136.48	136.32	143.35	144.09	146.43	144.48	148.49	155.74	149.71	157.28	160.41	159.47	159.91	153.27	145.39	139.14	154.89	157.63

June 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 98.53 + 62.23 – 31.71
= 129.06

The cash conversion cycle of Phibro Animal Health Corporation has fluctuated over the past few quarters, ranging from a low of 129.06 days to a high of 160.41 days. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

A shorter cash conversion cycle indicates that the company is able to efficiently manage its working capital, while a longer cash conversion cycle may suggest inefficiencies in managing inventory, accounts receivable, and accounts payable.

In the most recent quarter, the cash conversion cycle decreased to 129.06 days, indicating an improvement in the company's ability to convert its resources into cash. However, it is essential for Phibro Animal Health Corporation to continue monitoring and managing its working capital effectively to ensure optimal cash flow and overall financial performance.