Phibro Animal Health Corporation (PAHC)

Return on total capital

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	53,315	72,747	85,018	80,186	70,125
Long-term debt	US$ in thousands	282,289	311,541	272,925	382,710	368,257
Total stockholders’ equity	US$ in thousands	256,641	282,509	262,442	238,529	188,204
Return on total capital		9.89%	12.25%	15.88%	12.91%	12.60%

June 30, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $53,315K ÷ ($282,289K + $256,641K)
= 9.89%

Phibro Animal Health Corporation's return on total capital has shown a decreasing trend over the past five years. The return on total capital was 9.89% as of June 30, 2024, down from 12.25% in 2023, 15.88% in 2022, 12.91% in 2021, and 12.60% in 2020. This decline in the return on total capital indicates that the company's ability to generate profits from its total invested capital has weakened over time. It is important for the company to closely examine the factors contributing to this trend and take necessary steps to improve its returns on capital in order to enhance efficiency and profitability.