Phibro Animal Health Corporation (PAHC)

Cash ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cash and cash equivalents	US$ in thousands	70,613	41,281	74,248	50,212	36,343
Short-term investments	US$ in thousands	44,000	40,000	17,000	43,000	55,000
Total current liabilities	US$ in thousands	204,148	176,000	190,832	164,116	157,238
Cash ratio		0.56	0.46	0.48	0.57	0.58

June 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($70,613K + $44,000K) ÷ $204,148K
= 0.56

The cash ratio of Phibro Animal Health Corporation has fluctuated over the past five years, ranging from 0.46 to 0.58. The cash ratio represents the proportion of a company's current assets held in cash or cash equivalents relative to its current liabilities. A higher cash ratio indicates a company has more readily available cash to cover its current liabilities.

In this case, the cash ratio was highest in June 2021 at 0.58, indicating that the company had more cash on hand relative to its current liabilities at that time. However, the cash ratio decreased slightly in the subsequent years, reaching its lowest point in June 2023 at 0.46, before recovering to 0.56 in June 2024.

Overall, Phibro Animal Health Corporation's cash ratio has shown some volatility but has remained above 0.4, suggesting that the company generally has a sufficient level of cash to meet its short-term obligations. It would be important to assess the company's cash management policies and liquidity position further to understand the reasons behind these fluctuations in the cash ratio.