Phibro Animal Health Corporation (PAHC)

Quick ratio

		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	US$ in thousands	70,613	50,225	32,970	43,153	41,281	37,238	68,422	76,280	74,248	70,748	63,385	41,175	50,212	49,103	34,534	30,969	36,343	26,748	26,180	54,893
Short-term investments	US$ in thousands	44,000	48,523	59,523	48,000	40,000	40,000	10,000	10,000	17,000	22,100	32,100	56,000	43,000	44,000	61,000	61,000	55,000	55,000	49,000	24,000
Receivables	US$ in thousands	169,452	161,087	150,627	149,228	163,479	152,740	151,830	142,728	166,537	156,561	142,495	140,644	146,852	135,562	126,026	125,457	126,522	151,556	147,441	145,444
Total current liabilities	US$ in thousands	204,148	189,072	187,735	172,355	176,000	165,308	167,569	172,499	190,832	187,102	166,628	152,586	164,116	168,891	166,903	160,952	157,238	161,232	147,059	141,973
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

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 has remained relatively stable over the past few quarters, ranging from 1.30 to 1.43. This indicates that the company has a healthy level of liquid assets to cover its short-term liabilities.

The quick ratio has consistently been above 1, suggesting that Phibro has an adequate level of easily convertible assets, such as cash, marketable securities, and accounts receivable, to meet its current obligations without relying heavily on inventory. This is a positive sign of the company's liquidity and ability to handle its short-term financial commitments.

Overall, the trend in Phibro's quick ratio demonstrates a prudent approach to managing liquidity, providing a cushion against potential short-term financial challenges.