Phibro Animal Health Corporation (PAHC)

Financial leverage ratio

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	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
Total assets	US$ in thousands	1,360,900	1,317,260	1,285,510	966,289	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
Total stockholders’ equity	US$ in thousands	285,682	265,992	246,802	258,527	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
Financial leverage ratio		4.76	4.95	5.21	3.74	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

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 general trend of relative stability with notable fluctuations over the analyzed period. Starting at 4.10 on September 30, 2020, the ratio experienced a gradual decline throughout 2021, reaching its lowest point of 3.43 by March 31, 2022. This indicates a reduction in leverage, implying a moderate decrease in reliance on debt financing relative to equity during this period.

From mid-2022 onwards, the leverage ratio stabilized around the 3.5 to 3.6 range, reflecting a relatively consistent leverage stance. This stability persisted until late 2023 and early 2024, with slight variations surrounding the 3.5 level.

However, a significant upward shift occurred at the end of 2024, where the ratio sharply increased to 5.21 as of December 31, 2024, suggesting a considerable rise in debt levels relative to equity. This elevated leverage persisted into early 2025, with the ratio remaining high at 4.95 on March 31, 2025, and decreasing slightly to 4.76 by June 30, 2025.

Overall, the data indicates that while the company generally maintained moderate to low leverage in the early to mid-period, a notable increase in leverage was observed at the end of 2024, which may reflect changes in financial strategy, operational funding needs, or other external factors impacting debt levels.