Phibro Animal Health Corporation (PAHC)

Debt-to-capital 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 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
Debt-to-capital ratio		0.52	0.52	0.52	0.53	0.52	0.50	0.51	0.52	0.51	0.60	0.62	0.63	0.62	0.62	0.63	0.66	0.66	0.64	0.62	0.65

June 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $282,289K ÷ ($282,289K + $256,641K)
= 0.52

The debt-to-capital ratio of Phibro Animal Health Corporation has displayed some fluctuations over the past several quarters. The ratio has ranged from 0.50 to 0.66, with some variability in between. In general, the trend shows that the company has maintained a relatively stable debt-to-capital ratio, hovering around the range of 0.50 to 0.60.

The ratio indicates that, on average, around 50% to 60% of Phibro's capital structure is funded by debt, with the remaining portion financed by equity. A ratio above 0.50 suggests that the company relies more on debt financing than equity financing to support its operations and growth initiatives. It is worth noting that the ratio increased to 0.66 in the most recent quarter, which may indicate a slight increase in the relative proportion of debt in the capital structure.

Overall, monitoring the debt-to-capital ratio is crucial for assessing the company's financial leverage and risk profile. A higher ratio may indicate higher financial risk and interest payment obligations, which could impact the company's financial health and flexibility. It is important for Phibro Animal Health Corporation to evaluate its debt levels carefully and ensure an appropriate balance between debt and equity to support sustainable growth and long-term success.