Phibro Animal Health Corporation (PAHC)

Liquidity ratios

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 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019
Current ratio 2.94 3.16 3.12 3.39 3.33 3.54 3.47 3.30 2.97 2.92 3.05 3.27 3.04 2.79 2.86 2.88 2.87 2.72 3.03 3.21
Quick ratio 1.39 1.37 1.30 1.39 1.39 1.39 1.37 1.33 1.35 1.33 1.43 1.56 1.46 1.35 1.33 1.35 1.39 1.45 1.51 1.58
Cash ratio 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 0.58 0.51 0.51 0.56

Phibro Animal Health Corporation has consistently maintained strong liquidity ratios over the past few quarters. The current ratio has ranged from 2.72 to 3.54, indicating the company's ability to cover its short-term liabilities with its current assets. This suggests a healthy liquidity position.

The quick ratio has also been relatively stable, ranging from 1.30 to 1.58. This ratio provides a more conservative measure of liquidity as it excludes inventory from current assets. The company's ability to meet its short-term obligations using its most liquid assets remains strong.

The cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, has ranged from 0.46 to 0.64. Phibro Animal Health Corporation has maintained a healthy cash ratio, indicating the availability of sufficient cash to meet its immediate obligations.

Overall, the liquidity ratios of Phibro Animal Health Corporation reflect a solid financial position with ample liquidity to support its operations and meet its short-term obligations.

Additional liquidity measure

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 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019
Cash conversion cycle days 129.06 138.04 136.48 136.32 143.35 144.09 146.43 144.48 148.49 155.74 149.71 157.28 160.41 159.47 159.91 153.27 145.39 139.14 154.89 157.63

The cash conversion cycle of Phibro Animal Health Corporation has fluctuated over the past few quarters, indicating varying efficiency in managing its cash, inventory, and receivables.

The trend shows that the company's cash conversion cycle was at its lowest point at 129.06 days in June 2024, indicating a shorter period for Phibro to convert its investments in inventory and accounts receivable into cash. However, the cycle increased to 138.04 days in March 2024, which may suggest delays in the conversion process.

Looking back further, the company experienced a peak in the cash conversion cycle at 160.41 days in March 2021, which was notably higher compared to the recent cycles. This indicates that Phibro faced challenges in efficiently managing its working capital during that period.

Overall, Phibro Animal Health Corporation should keep an eye on improving its cash conversion cycle by effectively managing its inventory levels, enhancing its accounts receivable collection process, and optimizing its payment terms with suppliers to ensure smoother cash flow operations.