Phibro Animal Health Corporation (PAHC)

Debt-to-assets ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Long-term debt	US$ in thousands	282,289	311,541	272,925	382,710	368,257
Total assets	US$ in thousands	982,184	971,397	931,699	841,325	784,100
Debt-to-assets ratio		0.29	0.32	0.29	0.45	0.47

June 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $282,289K ÷ $982,184K
= 0.29

The debt-to-assets ratio of Phibro Animal Health Corporation has shown a decreasing trend over the past five years, indicating a relatively lower reliance on debt funding compared to total assets. The ratio was 0.47 in 2020 and has gradually declined to 0.29 in 2024. This suggests that the company has been able to manage its debt levels efficiently in relation to its asset base, demonstrating improved financial stability and a stronger financial position. A lower debt-to-assets ratio generally signifies less financial risk and potentially greater capacity to withstand economic downturns. Overall, the declining trend in the debt-to-assets ratio for Phibro Animal Health Corporation reflects positively on its financial health and prudent debt management practices.