Phibro Animal Health Corporation (PAHC)

Cash ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cash and cash equivalents	US$ in thousands	68,039	70,613	41,281	74,248	50,212
Short-term investments	US$ in thousands	9,000	44,000	40,000	17,000	43,000
Total current liabilities	US$ in thousands	293,473	204,148	176,000	190,832	164,116
Cash ratio		0.26	0.56	0.46	0.48	0.57

June 30, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($68,039K + $9,000K) ÷ $293,473K
= 0.26

The cash ratio of Phibro Animal Health Corporation has exhibited notable fluctuations over the period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the company's cash ratio stood at 0.57, indicating that its cash and cash equivalents covered approximately 57% of its current liabilities, reflecting a relatively strong liquidity position. By June 30, 2022, the ratio decreased to 0.48, suggesting a slight reduction in liquidity, although it remained above half of the current liabilities. The downward trend continued into June 30, 2023, with the ratio further declining to 0.46, signifying a modest erosion in cash-based liquidity, possibly due to increased current liabilities or reduced cash holdings.

In the subsequent year, the cash ratio experienced an increase to 0.56 as of June 30, 2024, indicating an improvement in liquidity, approaching levels observed in 2021. This resurgence could be attributed to enhanced cash management, reduction in current liabilities, or improved operational cash flows. However, by June 30, 2025, the ratio declined sharply to 0.26, reflecting a significant decrease in cash holdings relative to current liabilities. This substantial drop may highlight a strategic shift towards deploying cash for investments, acquisitions, or debt repayment, or could point to challenges in generating sufficient cash flows to cover short-term obligations.

Overall, the trend demonstrates periods of both strengthening and weakening liquidity positions, with a notable peak in 2021 and an apparent decline in 2025. The fluctuations in the cash ratio imply varying management strategies and potential shifts in operational cash flow dynamics over the analyzed timeframe.