Phibro Animal Health Corporation (PAHC)

Return on assets (ROA)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Net income	US$ in thousands	48,264	2,416	32,606	49,175	54,385
Total assets	US$ in thousands	1,360,900	982,184	971,397	931,699	841,325
ROA		3.55%	0.25%	3.36%	5.28%	6.46%

June 30, 2025 calculation

ROA = Net income ÷ Total assets
= $48,264K ÷ $1,360,900K
= 3.55%

The return on assets (ROA) for Phibro Animal Health Corporation has experienced significant fluctuations over the specified period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the ROA was 6.46%, indicating a relatively efficient use of company assets to generate net income at that time. By June 30, 2022, the ROA declined to 5.28%, reflecting a slight reduction in profitability relative to the asset base.

This downward trend continued markedly through the subsequent year, with the ROA decreasing to 3.36% as of June 30, 2023. Such a decline suggests a deterioration in the company's asset utilization efficiency or a decrease in net income earned relative to total assets. The decline becomes even more pronounced by June 30, 2024, where the ROA dropped sharply to 0.25%, indicating a severe reduction in asset profitability and potentially signaling operational challenges or increased costs that significantly impacted net income.

However, the ROA shows signs of modest recovery in the year ending June 30, 2025, rising to 3.55%. This increase suggests a possible improvement in profitability or more effective asset management, though the ratio remains well below historical levels observed in 2021. Overall, the trend reflects a considerable decline in asset efficiency over the four-year period, with a brief indication of recovery in the most recent year.