Phibro Animal Health Corporation (PAHC)

Quick ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cash	US$ in thousands	70,613	41,281	74,248	50,212	36,343
Short-term investments	US$ in thousands	44,000	40,000	17,000	43,000	55,000
Receivables	US$ in thousands	169,452	163,479	166,537	146,852	126,522
Total current liabilities	US$ in thousands	204,148	176,000	190,832	164,116	157,238
Quick ratio		1.39	1.39	1.35	1.46	1.39

June 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($70,613K + $44,000K + $169,452K) ÷ $204,148K
= 1.39

The quick ratio of Phibro Animal Health Corporation over the past five years has remained relatively stable, with values ranging from 1.35 to 1.46. This indicates the company's ability to meet its short-term obligations using its most liquid assets, excluding inventory.

A quick ratio above 1 suggests that Phibro Animal Health Corporation has an adequate level of liquid assets to cover its current liabilities. The company has generally maintained a healthy quick ratio, indicating a strong liquidity position.

However, it is important to note that a quick ratio of around 1.39 may indicate that the company could potentially improve its efficiency in managing its current assets to generate higher liquidity or reduce short-term liabilities to further strengthen its financial position. Overall, the consistent quick ratio above 1 signifies Phibro Animal Health Corporation's ability to manage its short-term financial obligations effectively.