Phibro Animal Health Corporation (PAHC)

Current ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Total current assets	US$ in thousands	600,997	585,723	566,232	498,909	451,837
Total current liabilities	US$ in thousands	204,148	176,000	190,832	164,116	157,238
Current ratio		2.94	3.33	2.97	3.04	2.87

June 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $600,997K ÷ $204,148K
= 2.94

The current ratio of Phibro Animal Health Corporation has displayed some fluctuations over the past five years. As of June 30, 2024, the current ratio stands at 2.94, which indicates that the company has $2.94 in current assets for every $1 in current liabilities.

Compared to the previous year, the current ratio has decreased from 3.33 in June 2023 to 2.94 in June 2024. This decline may raise some concerns about the company's short-term liquidity position. However, it is important to note that the current ratio remains above 2.0, suggesting that Phibro Animal Health Corporation has a healthy cushion of current assets to cover its current liabilities.

When looking at the trend over the past five years, the current ratio has generally been above 2.0, indicating a consistent ability to meet short-term obligations. Despite some fluctuations, the company has maintained a relatively stable liquidity position, with variations within a reasonable range.

Overall, while the recent decrease in the current ratio raises a red flag, Phibro Animal Health Corporation's historical performance suggests a generally solid liquidity position that enables the company to meet its short-term financial obligations.