Phibro Animal Health Corporation (PAHC)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	256,641	282,509	262,442	238,529	188,204
Debt-to-equity ratio		1.10	1.10	1.04	1.60	1.96

June 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $282,289K ÷ $256,641K
= 1.10

The debt-to-equity ratio of Phibro Animal Health Corporation has shown a fluctuating trend over the past five years. In 2020, the ratio was at its highest at 1.96, indicating that the company had a higher level of debt relative to its equity. This was followed by a significant decrease in 2021 to 1.60, suggesting a reduction in the reliance on debt financing.

However, the debt-to-equity ratio remained relatively stable in 2022 and 2023, both standing at 1.10. This indicates that the company's debt level was roughly equal to its equity in these years, reflecting a balanced capital structure.

In the most recent year, 2024, the debt-to-equity ratio has remained at 1.10, the same as in 2023. This suggests that the company's debt and equity proportions have not changed significantly between these two consecutive years.

Overall, the varying debt-to-equity ratios of Phibro Animal Health Corporation over the past five years indicate fluctuations in the company's capital structure and its reliance on debt financing. The recent stability in the ratio may suggest a more consistent approach to managing debt levels in relation to equity.