Phibro Animal Health Corporation (PAHC)

Return on equity (ROE)

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 stockholders’ equity US$ in thousands 285,682 265,992 246,802 258,527 256,641 270,094 270,803 273,069 282,509 272,328 268,370 262,756 262,442 266,945 239,294 233,305 238,529 215,921 213,322 192,412
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%

June 30, 2025 calculation

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

The analysis of Phibro Animal Health Corporation's return on equity (ROE) over the specified periods reveals notable fluctuations and a general downward trend from September 2020 to June 2024, followed by some recovery in subsequent quarters.

Initially, the ROE demonstrated a relatively high level, peaking at 22.50% in September 2020, indicating strong profitability relative to shareholders' equity. Throughout the remainder of 2020 and into early 2021, the ROE experienced a slight decline, reaching 19.85% by March 2021, and then rising again to 22.79% in June 2021. During this period, the company's profitability relative to equity displayed some resilience, characterized by modest oscillations.

From late 2021 onward, there was a consistent decline in ROE. The figure dropped from 22.26% (December 2021) to 13.51% in December 2022, reflecting a significant reduction in profitability margins associated with shareholders’ equity. The downward trend steepened in 2023, with ROE decreasing steadily from 10.50% in March 2023 to 7.60% in September 2023, and further to 5.47% by December 2023. This consistent erosion suggests challenges in maintaining previous levels of profitability or possible increased equity base that did not correspond with proportionate increases in net income.

The decline persisted into early 2024, with ROE reaching a low of 0.95% in June 2024, indicating a near-elimination of profitability relative to equity during that period. However, some signs of recovery emerged subsequently, with ROE rising to 6.73% in September 2024 and further to 7.83% by December 2024.

Looking into the most recent forecasts, the data shows a positive trajectory. The projections for March and June 2025 are 11.95% and 16.89%, respectively, reflecting a significant improvement in ROE and implying anticipated enhancements in profitability or efficiency.

Overall, the historical data indicates that Phibro Animal Health Corporation experienced robust ROE levels in early periods, followed by a prolonged decline over successive quarters. The recent upward revisions in projections suggest potential strategic or operational improvements, though the company’s historical trend underscores periods of significant erosion in shareholder returns.