Phibro Animal Health Corporation (PAHC)

Financial leverage ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Total assets	US$ in thousands	1,360,900	982,184	971,397	931,699	841,325
Total stockholders’ equity	US$ in thousands	285,682	256,641	282,509	262,442	238,529
Financial leverage ratio		4.76	3.83	3.44	3.55	3.53

June 30, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,360,900K ÷ $285,682K
= 4.76

The financial leverage ratio of Phibro Animal Health Corporation demonstrates a generally stable trend from June 30, 2021, through June 30, 2023, with values of 3.53, 3.55, and 3.44 respectively. This indicates that during this period, the company's degree of financial leverage remained relatively consistent, suggesting moderate reliance on debt financing relative to equity.

However, a shift is observed beginning in the fiscal year ending June 30, 2024, where the ratio increases substantially to 3.83. This upward movement signifies a marginal rise in the company's leverage, implying a marginal increase in the use of debt relative to equity, potentially reflecting strategic debt utilization or financing activities during this period.

The most notable change occurs by June 30, 2025, when the leverage ratio jumps to 4.76. This significant escalation indicates a considerable increase in the company's financial leverage, which could be associated with increased debt levels or reduced equity. Such a rise enhances the company's financial risk profile, as higher leverage magnifies both potential returns and potential volatility in earnings attributable to debt obligations.

Overall, the trend shows relatively stable leverage in the initial periods, followed by a marked increase in recent years. This progression suggests a strategic shift toward higher financial leverage, which warrants monitoring for its implications on the company's risk management, debt servicing capacity, and overall financial stability.