Phibro Animal Health Corporation (PAHC)
Profitability ratios
Return on sales
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 30.85% | 31.64% | 31.74% | 31.31% | 30.66% | 30.20% | 30.40% | 30.44% | 30.50% | 30.68% | 30.47% | 30.15% | 30.30% | 30.51% | 31.19% | 31.88% | 32.56% | 32.81% | 32.90% | 32.68% |
| Operating profit margin | 8.52% | 7.51% | 6.88% | 6.33% | 4.70% | 5.90% | 5.84% | 5.88% | 7.35% | 6.40% | 6.50% | 7.26% | 7.49% | 8.30% | 8.67% | 8.66% | 8.99% | 9.24% | 9.40% | 9.27% |
| Pretax margin | 5.25% | 4.25% | 3.05% | 3.11% | 1.07% | 2.59% | 2.86% | 3.75% | 5.53% | 4.60% | 5.84% | 7.10% | 7.68% | 8.38% | 7.62% | 6.98% | 7.97% | 8.35% | 8.47% | 8.50% |
| Net profit margin | 3.72% | 2.67% | 1.75% | 1.66% | 0.24% | 1.32% | 1.51% | 2.12% | 3.33% | 2.92% | 3.73% | 4.84% | 5.22% | 6.48% | 6.06% | 5.70% | 6.52% | 5.36% | 5.54% | 5.37% |
The profitability ratios of Phibro Animal Health Corporation over the specified periods reveal key insights into the company's financial performance and margins.
Gross Profit Margin:
The gross profit margin has demonstrated relative stability, fluctuating within a narrow range from approximately 30.15% in September 2022 to around 32.90% in December 2020. Since early 2021, there has been a slight declining trend, with margins gradually decreasing from the high 32% levels to below 30.4% by the end of 2023. Recently, starting mid-2024, there has been a modest recovery, culminating in approximately 31.64% in March 2025. The sustained relatively high gross margins suggest the company maintains effective management of cost of goods sold relative to revenue, though modest compression is evident over the past couple of years.
Operating Profit Margin:
Operating profit margins have exhibited greater volatility. Initially, margins hovered around 9.27–9.40% through 2020 and into early 2021. However, starting from mid-2022, a noticeable decline occurred, with margins dropping to approximately 6.50% by the end of 2022 and further declining to below 5.90% during 2023. Remarkably, beginning in late 2023 and into 2024, there has been an improvement, with margins rising to approximately 8.52% in June 2025. This trend indicates periods of operational pressure followed by signs of recovery, possibly reflecting adjustments in operational efficiency or cost control.
Pre-Tax Margin:
Pre-tax margins follow a similar pattern of fluctuation. The margins declined from over 8% in early periods to lows near 2.86% at the end of 2023. Recent data from mid-2024 shows a comeback, with pre-tax margins reaching approximately 5.25% in June 2025. These fluctuations suggest sensitivity to external and internal factors influencing pre-tax profitability, including cost structures and revenue changes.
Net Profit Margin:
The net profit margin mirrors the trends observed in operating and pre-tax margins. Initially, net margins were around 5.37–5.54% until early 2021, after which there was a gradual decline, reaching about 1.51% at the end of 2023. The margins remained subdued but exhibited a gradual recovery in 2024 and early 2025, achieving near 3.72% by June 2025. The pattern indicates periods of profitability compression with subsequent partial recovery, potentially reflecting variations in overall expense management, tax impacts, and other non-operational factors.
Overall Summary:
Phibro Animal Health Corporation demonstrates stable gross profit margins with marginal declines over recent years, indicating maintained product pricing power or cost controls at the gross level. However, operating, pre-tax, and net profit margins have experienced notable compression from 2021 through 2023, reflecting operational, financial, or macroeconomic challenges. The recent improvements in mid-2024 through mid-2025 suggest a potential turnaround or operational restructuring efforts that are beginning to positively influence profitability ratios. Nonetheless, overall profitability margins remain below their earlier peaks, signaling areas for ongoing focus to bolster comprehensive profitability.
Return on investment
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.12% | 6.79% | 5.92% | 6.85% | 4.87% | 6.02% | 5.89% | 5.96% | 7.40% | 6.48% | 6.57% | 7.35% | 7.58% | 8.22% | 8.98% | 8.83% | 8.90% | 9.17% | 9.33% | 9.46% |
| Return on assets (ROA) | 3.55% | 2.41% | 1.50% | 1.80% | 0.25% | 1.35% | 1.52% | 2.15% | 3.36% | 2.96% | 3.77% | 4.90% | 5.28% | 6.42% | 6.27% | 5.81% | 6.46% | 5.32% | 5.50% | 5.48% |
| Return on total capital | 34.49% | 32.55% | 27.73% | 27.27% | 16.80% | 21.22% | 20.86% | 20.63% | 28.18% | 23.79% | 24.04% | 27.01% | 27.39% | 28.39% | 31.91% | 31.70% | 31.46% | 34.66% | 35.64% | 39.46% |
| Return on equity (ROE) | 16.89% | 11.95% | 7.83% | 6.73% | 0.95% | 4.88% | 5.47% | 7.60% | 11.54% | 10.50% | 13.51% | 17.70% | 18.74% | 22.02% | 22.26% | 20.83% | 22.79% | 19.85% | 20.72% | 22.50% |
The profitability ratios of Phibro Animal Health Corporation indicate a pattern of fluctuating performance over the analyzed period, reflecting variations in operational efficiency and overall financial health.
Operating Return on Assets (Operating ROA):
The Operating ROA demonstrates a declining trend from a peak of 9.46% as of September 30, 2020, to a low of approximately 4.87% as of June 30, 2024. Although there are periods of slight recovery, notably reaching 8.12% in June 2025, the overall trajectory signifies diminishing operational efficiency relative to asset levels over time. This suggests challenges in generating operating income from the company's assets, with a notable decrease during the period between September 2021 and December 2024.
Return on Assets (ROA):
The ROA also exhibits a declining pattern, with values decreasing steadily from approximately 5.48% in September 2020 to a trough of about 0.25% in June 2024. While there are brief recoveries, such as reaching 3.55% in June 2025, the general trend indicates a reduction in overall asset profitability. This decline points toward increased difficulty in converting assets into net income, possibly due to operational challenges or market conditions affecting profitability.
Return on Total Capital:
This metric follows a downward trend from above 39% in September 2020 to approximately 16.80% in June 2024. Nevertheless, there is a notable rebound in the latter periods, with ratios rising to over 34% as of June 2025. The fluctuations suggest periods of deteriorating and then improving capital utilization efficiency, with the recent upward movement implying a potential recovery or strategic improvement in capital deployment.
Return on Equity (ROE):
ROE exhibits a significant decline over the period, dropping from 22.50% in September 2020 to a low of around 0.95% in June 2024. The continuous decrease indicates reduced profitability attributable to shareholders, potentially caused by declining net income, increased equity, or both. However, in the most recent quarters, there is a noticeable recovery, with ROE reaching approximately 16.89% in June 2025. This suggests that the company may be restoring shareholder returns through improved earnings or strategic adjustments.
Summary:
Overall, Phibro Animal Health Corporation's profitability ratios have experienced a downward trend between 2020 and mid-2024, indicating periods of reduced operational efficiency and profit generation from assets and equity. The subsequent upward movements in late 2024 and early 2025 suggest a possible turnaround, reflecting efforts to enhance profitability or a response to changing market conditions. Continuous monitoring of these ratios will be essential to assess whether the recent improvements can be sustained and whether operational efficiencies can be fully restored.