Phibro Animal Health Corporation (PAHC)

Return on total capital

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Earnings before interest and tax (EBIT) US$ in thousands 102,595 48,429 72,020 82,113 73,619
Long-term debt US$ in thousands — — — — —
Total stockholders’ equity US$ in thousands 285,682 256,641 282,509 262,442 238,529
Return on total capital 35.91% 18.87% 25.49% 31.29% 30.86%

June 30, 2025 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $102,595K ÷ ($—K + $285,682K)
= 35.91%

The return on total capital for Phibro Animal Health Corporation has experienced notable fluctuations over the period from June 2021 to June 2025.

In June 2021, the company reported a return on total capital of approximately 30.86%, indicating a strong level of efficiency in generating profits from the total capital invested. This performance slightly increased by June 2022 to 31.29%, reflecting a modest improvement in overall capital profitability during that period.

However, by June 2023, there was a significant decline to 25.49%, suggesting a deterioration in the company's ability to generate profits from its total capital base. The downward trend continued into June 2024, with the ratio dropping further to 18.87%, which may indicate increased challenges or less efficient use of capital resources during that timeframe.

Contrasting this negative trend, a substantial rebound was observed by June 2025, with the return on total capital rising sharply to 35.91%. This indicates a notable recovery in the company's capital profitability, surpassing previous levels and potentially reflecting improved operational performance, strategic adjustments, or favorable market conditions.

Overall, the company's return on total capital has demonstrated volatility over the analyzed period. The initial stability and slight growth in the early years were interrupted by a period of decline, followed by a marked recovery in the most recent year. This pattern suggests that the company has experienced periods of both challenge and resilience in capital efficiency over the analyzed timeframe.