Phibro Animal Health Corporation (PAHC)

Return on assets (ROA)

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
Net income (ttm) US$ in thousands 48,264 31,792 19,317 17,406 2,431 13,177 14,814 20,750 32,606 28,608 36,255 46,510 49,188 58,788 53,260 48,596 54,364 42,864 44,204 43,297
Total assets US$ in thousands 1,360,900 1,317,260 1,285,510 966,289 982,184 979,035 972,708 964,523 971,397 965,432 961,833 948,378 931,699 916,181 848,958 836,044 841,325 805,017 803,651 789,554
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%

June 30, 2025 calculation

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

The analysis of Phibro Animal Health Corporation’s return on assets (ROA) reveals a trend characterized by initial stability followed by a significant decline over the observed period.

Between September 30, 2020, and December 31, 2021, the ROA remained relatively steady, fluctuating narrowly around approximately 5.3% to 6.3%, indicating a period of operational consistency and moderate profitability relative to the company’s total assets. The peak during this phase was observed at 6.46% on June 30, 2021.

From the beginning of 2022 onwards, a downward trajectory becomes evident. The ROA declined from 5.28% in June 2022 to 4.90% in September 2022, then further to 3.77% by December 2022, and continued to decrease sharply into 2023, reaching approximately 2.96% by March 2023 and approximately 2.15% by September 2023. This persistent decrease indicates a diminishing efficiency in generating net income from the company’s assets.

The trend extended into the first half of 2024, with ROA dropping to 1.35% in March and further falling to 0.25% in June 2024, the lowest point within the period under observation. Subsequently, a modest recovery is observed; ROA increased to 1.80% in September 2024, then slightly declined to 1.50% in December 2024, and increased again to 2.41% in March 2025 before reaching 3.55% in June 2025.

Overall, the data suggests a significant deterioration in asset profitability over the measured timeline, particularly noticeable from early 2022 onward. The initial stability was succeeded by a steady decline, which may reflect evolving operational challenges, shifts in industry conditions, or strategic adjustments impacting the company’s overall efficiency in utilizing its assets to generate earnings. The recent slight recovery in 2024 and 2025 could potentially indicate stabilization efforts or operational improvements, although the ROA remains substantially lower compared to the earlier period.