Phibro Animal Health Corporation (PAHC)

Debt-to-assets ratio

		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
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 assets	US$ in thousands	982,184	979,035	972,708	964,523	971,397	965,432	961,833	948,378	931,699	916,181	848,958	836,044	841,325	805,017	803,651	789,554	784,100	776,050	788,318	795,239
Debt-to-assets ratio		0.29	0.30	0.31	0.32	0.32	0.28	0.29	0.30	0.29	0.44	0.46	0.47	0.45	0.44	0.45	0.48	0.47	0.45	0.45	0.48

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 fluctuated over the past few quarters. The trend shows that the company's level of debt relative to its total assets has varied between 0.28 to 0.47, with the latest ratio being 0.29 as of June 30, 2024. This indicates that approximately 29% of the company's assets are financed by debt.

Overall, the trend in the debt-to-assets ratio suggests that Phibro Animal Health Corporation has been effectively managing its debt levels in relation to its assets. The ratio has remained relatively stable within a reasonable range, which indicates that the company has a balanced approach to leveraging debt for financing its operations while ensuring a significant portion of its assets are funded by equity.

It is worth noting that a lower debt-to-assets ratio generally signifies a lower level of financial risk, as it indicates that a smaller portion of the company's assets is funded by debt. Conversely, a higher ratio may indicate increased financial risk and lower creditor confidence. Phibro Animal Health Corporation's debt-to-assets ratio trend indicates prudent debt management and financial stability.