Phibro Animal Health Corporation (PAHC)

Cash ratio

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
Cash and cash equivalents US$ in thousands 68,039 60,354 67,074 51,837 70,613 50,225 32,970 43,153 41,281 37,238 68,422 76,280 74,248 70,748 63,385 41,175 50,212 49,103 34,534 30,969
Short-term investments US$ in thousands 9,000 10,000 0 38,000 44,000 48,523 59,523 48,000 40,000 40,000 10,000 10,000 17,000 22,100 32,100 56,000 43,000 44,000 61,000 61,000
Total current liabilities US$ in thousands 293,473 266,481 233,250 176,894 204,148 189,072 187,735 172,355 176,000 165,308 167,569 172,499 190,832 187,102 166,628 152,586 164,116 168,891 166,903 160,952
Cash ratio 0.26 0.26 0.29 0.51 0.56 0.52 0.49 0.53 0.46 0.47 0.47 0.50 0.48 0.50 0.57 0.64 0.57 0.55 0.57 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 demonstrates a relatively stable yet gradually declining trend over the analyzed period from September 2020 through March 2025. Starting at 0.57 in September and December 2020, the ratio remains consistent through September 2021, reaching a peak of 0.64 in September 2021. Subsequently, the ratio exhibits a mild downward trajectory, declining to approximately 0.50 by March 2022 and reaching around 0.46 in June 2023. Throughout this period, the ratio maintains some minor fluctuations but sustains a generally steady level indicative of the company's liquidity position.

In the latter part of the timeframe, from December 2023 to June 2024, the cash ratio exhibits initial stability, slightly increasing to 0.56, then reducing modestly to 0.51 by September 2024. A significant decline is observed afterward, with the ratio dropping sharply to 0.29 by December 2024, and further decreasing to 0.26 in March and June 2025. This marked reduction indicates a substantial decrease in the proportion of cash and cash equivalents relative to current liabilities, potentially reflecting a change in liquidity management or an increase in current liabilities.

Overall, the company's cash ratio has remained within a relatively narrow range of approximately 0.26 to 0.64 throughout the period. The persistent decline in recent years signifies a reduction in liquidity buffer, which may warrant further analysis to understand underlying operational or strategic causes, considering the implications for short-term financial stability.