Phibro Animal Health Corporation (PAHC)

Financial leverage 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
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
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
Financial leverage ratio		3.83	3.62	3.59	3.53	3.44	3.55	3.58	3.61	3.55	3.43	3.55	3.58	3.53	3.73	3.77	4.10	4.17	3.97	3.63	3.85

June 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $982,184K ÷ $256,641K
= 3.83

The financial leverage ratio of Phibro Animal Health Corporation has fluctuated over the past few quarters, ranging from 3.43 to 4.17. The ratio indicates the level of financial risk the company is taking by using debt to finance its operations. A higher ratio suggests higher financial risk as the company has more debt compared to its equity.

From the data provided, we can observe that the financial leverage ratio peaked at 4.17 in March 2020, indicating relatively high financial risk at that point. However, the ratio decreased in subsequent quarters before increasing again to 4.10 in December 2020. This fluctuation suggests changes in the company's capital structure and debt levels over time.

Overall, Phibro Animal Health Corporation's financial leverage ratio has generally been above 3.5, indicating a significant reliance on debt financing. Investors and stakeholders may monitor this ratio closely to assess the company's ability to meet its debt obligations and the overall level of financial risk inherent in its operations.