Phibro Animal Health Corporation (PAHC)

Quick ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cash	US$ in thousands	68,039	70,613	41,281	74,248	50,212
Short-term investments	US$ in thousands	9,000	44,000	40,000	17,000	43,000
Receivables	US$ in thousands	227,983	169,452	163,479	166,537	146,852
Total current liabilities	US$ in thousands	293,473	204,148	176,000	190,832	164,116
Quick ratio		1.04	1.39	1.39	1.35	1.46

June 30, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($68,039K + $9,000K + $227,983K) ÷ $293,473K
= 1.04

The quick ratio of Phibro Animal Health Corporation has demonstrated relative stability over the analyzed period, with values ranging from 1.04 to 1.46. As of June 30, 2021, the quick ratio stood at 1.46, indicating a strong liquidity position with sufficient liquid assets to cover current liabilities. By June 30, 2022, the ratio declined modestly to 1.35, reflecting a slight decrease in liquidity but still maintaining a comfortable buffer. The ratio experienced a marginal increase to 1.39 on June 30, 2023, and remained unchanged through June 30, 2024, suggesting consistent liquidity management and steady availability of quick assets relative to current liabilities during this period. However, by June 30, 2025, the ratio decreased further to 1.04, approaching a lower threshold but still above 1.0, indicating that the company's liquid assets are just sufficient to meet its short-term obligations.

Overall, the trend indicates that while Phibro Animal Health Corporation has maintained a generally solid liquidity position throughout the five-year span, there is a notable decline in the quick ratio toward the most recent year. This decline may warrant ongoing monitoring to ensure that liquidity remains adequate in the face of potential future operational or market fluctuations.