Phibro Animal Health Corporation (PAHC)

Cash conversion cycle

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
Days of inventory on hand (DOH) days 180.99 201.07 206.52 138.36 137.54 147.69 153.10 149.98 149.07 157.63 156.05 152.83 144.02 144.67 139.21 139.05 140.48 140.24 145.42 138.50
Days of sales outstanding (DSO) days 64.20 60.55 63.29 56.06 60.78 58.83 55.99 55.77 61.02 57.00 57.01 54.26 64.51 62.98 59.14 60.19 64.32 61.93 57.64 56.82
Number of days of payables days 56.28 59.02 48.07 43.93 44.26 43.22 46.15 41.48 39.66 40.79 43.46 48.10 53.12 51.92 48.66 41.97 44.40 42.70 43.15 42.05
Cash conversion cycle days 188.90 202.59 221.74 150.50 154.06 163.29 162.94 164.26 170.42 173.84 169.60 159.00 155.40 155.73 149.70 157.27 160.40 159.47 159.91 153.28

June 30, 2025 calculation

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

The analysis of Phibro Animal Health Corporation’s cash conversion cycle (CCC) over the period from September 2020 to June 2025 reveals notable fluctuations and an overall trend toward increased working capital efficiency. Initially, the CCC stood at approximately 153.28 days as of September 2020, with a gradual upward trajectory reaching a peak of approximately 221.74 days in December 2024.

Throughout the analyzed period, the CCC experienced periods of stability and incremental changes. Between September 2020 and December 2021, the cycle fluctuated within a relatively narrow range, oscillating around 149.70 to 160.40 days. A significant jump occurred in the latter part of 2022, with the CCC increasing markedly from approximately 159.00 days in September 2022 to 169.60 days in December 2022. This upward trend continued into early 2023, reaching approximately 173.84 days by March 2023, indicating a lengthening of the company's overall working capital cycle.

From mid-2023 onwards, the CCC remained elevated, with some fluctuations. It decreased slightly in June 2024 to approximately 154.06 days but then sharply increased to over 221 days in December 2024. The subsequent quarters showed a partial reduction, with the CCC decreasing to roughly 202.59 days in March 2025 and further to about 188.90 days in June 2025.

This pattern suggests that Phibro Animal Health’s cash conversion cycle has experienced periods of extension, particularly near the end of 2024 and into early 2025, which may reflect extended inventory holding periods, delayed receivables, or longer periods of accounts payable. The significant spike in December 2024 indicates potential operational or strategic changes affecting working capital management, such as supply chain disruptions, shifts in customer payment terms, or inventory management adjustments.

Overall, while the CCC demonstrates some cyclical and temporal volatility, the general trend shows an increase from initial levels in 2020 toward heightened levels in late 2024, followed by a modest reduction in 2025. This escalation implies a lengthening of the company's working capital cycle, which could have implications for liquidity and operational efficiency.