Phibro Animal Health Corporation (PAHC)

Return on assets (ROA)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Net income	US$ in thousands	2,416	32,606	49,175	54,385	33,552
Total assets	US$ in thousands	982,184	971,397	931,699	841,325	784,100
ROA		0.25%	3.36%	5.28%	6.46%	4.28%

June 30, 2024 calculation

ROA = Net income ÷ Total assets
= $2,416K ÷ $982,184K
= 0.25%

The return on assets (ROA) for Phibro Animal Health Corporation has exhibited a declining trend over the past five years. The ROA decreased from 4.28% in June 2020 to 0.25% in June 2024. This suggests that the company's ability to generate profit from its assets has weakened over the period.

The ROA of 0.25% in June 2024 indicates that for every dollar of assets, the company generated a profit of $0.0025. This reveals a relatively low efficiency in utilizing its assets to generate earnings compared to the previous years.

The decreasing trend in ROA may signal declining profitability and efficiency in asset utilization, which could be a concern for investors and stakeholders. It would be advisable for the company to assess its asset management strategies to improve profitability and efficiency moving forward.