Phibro Animal Health Corporation (PAHC)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 31.50% | 31.06% | 30.50% | 32.56% | 32.10% |
| Operating profit margin | 5.36% | 7.48% | 8.44% | 8.98% | 8.65% |
| Pretax margin | 1.10% | 5.63% | 7.73% | 7.98% | 6.94% |
| Net profit margin | 0.24% | 3.40% | 5.26% | 6.53% | 4.19% |
Phibro Animal Health Corporation's profitability ratios have shown a mixed trend over the five-year period from 2020 to 2024. The gross profit margin has fluctuated slightly around the 31% range, indicating relatively stable control over production costs and pricing strategies. However, there was a small decline in the most recent year compared to the previous year.
The operating profit margin has displayed a noticeable decline, dropping from 8.65% in 2020 to 5.36% in 2024. This indicates a decrease in efficiency in managing operating expenses or generating revenues from core business operations over the years.
Similarly, the pretax margin has shown a downward trend, with a significant decrease from 7.98% in 2021 to 1.10% in 2024. This decline suggests that the company's profitability before accounting for taxes has been negatively impacted, possibly due to higher expenses or lower revenues.
The net profit margin, which represents the profitability after all expenses, including taxes, has also decreased consistently over the years, from 6.53% in 2021 to 0.24% in 2024. This indicates that Phibro Animal Health Corporation's bottom line profitability has been under pressure, potentially due to a combination of factors such as increased costs, competitive pressures, or pricing challenges.
Overall, Phibro Animal Health Corporation's profitability ratios suggest a trend of declining profitability over the five-year period, warranting further investigation into the company's financial performance and operational efficiency.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.43% | 7.40% | 8.48% | 8.90% | 8.82% |
| Return on assets (ROA) | 0.25% | 3.36% | 5.28% | 6.46% | 4.28% |
| Return on total capital | 9.89% | 12.25% | 15.88% | 12.91% | 12.60% |
| Return on equity (ROE) | 0.94% | 11.54% | 18.74% | 22.80% | 17.83% |
Phibro Animal Health Corporation's profitability ratios have shown some fluctuation over the past five years.
- The Operating return on assets (Operating ROA) has decreased from 8.82% in 2020 to 5.43% in 2024. This indicates that the company's operating income generated from its assets has declined over the period.
- Return on assets (ROA) has also exhibited a downward trend, decreasing from 4.28% in 2020 to 0.25% in 2024. This implies that Phibro's overall profitability in relation to its total assets has weakened.
- Return on total capital has shown some variability, with a peak of 15.88% in 2022 and a low of 9.89% in 2024. This ratio reflects the company's ability to generate returns for both debt and equity holders.
- Return on equity (ROE) experienced a substantial decline from 22.80% in 2021 to 0.94% in 2024. This signifies a significant drop in the company's ability to generate profits for its equity shareholders.
Overall, Phibro Animal Health Corporation's profitability ratios have demonstrated mixed performance, with some ratios showing a decline over the years. This may indicate challenges in efficiently utilizing assets and generating returns for shareholders.