Phibro Animal Health Corporation (PAHC)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	285,682	256,641	282,509	262,442	238,529
ROE		16.89%	0.94%	11.54%	18.74%	22.80%

June 30, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $48,264K ÷ $285,682K
= 16.89%

The return on equity (ROE) for Phibro Animal Health Corporation demonstrates a notable downward trend over the analyzed period. As of June 30, 2021, the company’s ROE stood at 22.80%, indicating a robust ability to generate profits from shareholders' equity. By June 30, 2022, the ROE declined to 18.74%, reflecting a reduction in profitability relative to shareholders' equity, although it remained relatively strong.

This downward trajectory continued into the subsequent year, with the ROE markedly decreasing to 11.54% as of June 30, 2023. This substantial decline could suggest increased operational challenges, higher expenses, or shifts in net income relative to equity. The most pronounced decrease occurred between 2023 and 2024, with the ROE plunging to just 0.94%, approaching negligible levels and raising concerns about the company's efficiency in generating returns on shareholders' investments during that period.

However, in the following year, the ROE exhibited a significant recovery, rising to 16.89% as of June 30, 2025. This rebound suggests an improvement in profitability or operational efficiency, although the company has not yet returned to the higher levels observed in the early part of the analysis period.

Overall, the ROE trend indicates a period of substantial operational or financial difficulties around 2023-2024, followed by signs of recovery in the subsequent year. Investors and analysts might interpret this pattern as reflecting external market pressures, internal restructuring, or changes in profit margins, with the latest data providing a cautiously optimistic outlook on the company's ability to restore its profitability relative to shareholders' equity.