Phibro Animal Health Corporation (PAHC)

Return on total capital

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	39,937	48,409	49,852	57,301	72,747	61,640	71,575	81,470	85,018	89,414	80,332	73,228	80,186	79,572	81,034	82,338	70,125	63,326	63,935	66,639
Long-term debt	US$ in thousands	282,289	291,008	297,853	304,717	311,541	273,016	276,806	280,738	272,925	400,621	387,317	394,014	382,710	356,786	364,943	378,100	368,257	349,851	357,446	381,040
Total stockholders’ equity	US$ in thousands	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	188,204	195,345	217,415	206,694
Return on total capital		7.41%	8.63%	8.77%	9.92%	12.25%	11.30%	13.13%	14.99%	15.88%	13.39%	12.82%	11.67%	12.91%	13.89%	14.01%	14.43%	12.60%	11.62%	11.12%	11.34%

June 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $39,937K ÷ ($282,289K + $256,641K)
= 7.41%

The return on total capital for Phibro Animal Health Corporation has shown fluctuations over the past quarters, ranging from 7.41% to 15.88%. The ratio measures the company's ability to generate profits from the total capital invested in the business.

In the most recent quarter, Jun 30, 2024, the return on total capital was 7.41%, which signifies a decrease from the previous quarter. However, it is important to note that the ratio has generally been above 10% in the past, indicating the company's ability to efficiently utilize its capital resources to generate returns for shareholders.

The trend of the return on total capital indicates some variability in the company's performance, potentially due to changes in profitability, asset utilization, or capital structure. Investors and stakeholders may want to further investigate the underlying factors influencing these fluctuations to assess the sustainability and efficiency of Phibro Animal Health Corporation's operations.