Phibro Animal Health Corporation (PAHC)

Current ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Total current assets	US$ in thousands	810,606	600,997	585,723	566,232	498,909
Total current liabilities	US$ in thousands	293,473	204,148	176,000	190,832	164,116
Current ratio		2.76	2.94	3.33	2.97	3.04

June 30, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $810,606K ÷ $293,473K
= 2.76

The current ratio of Phibro Animal Health Corporation has demonstrated fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the current ratio stood at 3.04, indicating that the company's current assets significantly exceeded its current liabilities, suggesting a strong liquidity position at that time. By June 30, 2022, the current ratio slightly declined to 2.97, reflecting a minor decrease in liquidity but still indicative of a solid capability to meet short-term obligations.

Subsequently, the ratio increased to 3.33 as of June 30, 2023, which may suggest an improvement in liquidity, possibly through increased current assets or reduced current liabilities. However, this upward trend was not sustained, as the current ratio decreased to 2.94 by June 30, 2024. This reduction indicates a slight deterioration in liquidity position, though it remained comfortably above the commonly accepted benchmark of 1.0, signifying that the company maintained sufficient short-term assets to cover its short-term liabilities.

In the most recent period, June 30, 2025, the current ratio further decreased to 2.76. While this decline signals a continued trend of marginal tightening in short-term liquidity, the ratio remains well above one, suggesting the company continues to possess a robust liquidity buffer. Overall, the historical data reflects a generally healthy liquidity profile with some fluctuations, but without signs of immediate liquidity concerns.