Phibro Animal Health Corporation (PAHC)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	39,937	48,409	49,852	57,301	72,747	61,640	71,575	81,470	85,018	89,414	80,332	73,228	80,186	79,572	81,034	82,338	70,125	63,326	63,935	66,639
Interest expense (ttm)	US$ in thousands	1,040	22,460	21,721	20,626	18,676	16,641	14,847	13,321	12,691	13,331	13,300	13,674	13,718	12,848	13,428	13,889	14,613	14,984	14,742	14,267
Interest coverage		38.40	2.16	2.30	2.78	3.90	3.70	4.82	6.12	6.70	6.71	6.04	5.36	5.85	6.19	6.03	5.93	4.80	4.23	4.34	4.67

June 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $39,937K ÷ $1,040K
= 38.40

Phibro Animal Health Corporation's interest coverage ratio has varied over the past several quarters. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A higher ratio indicates a better ability to cover interest expenses.

From the data provided, we can see that there has been some fluctuation in Phibro Animal Health Corporation's interest coverage ratio. The ratio was strongest at 38.40 in June 2024, which is significantly higher compared to the previous quarters. This suggests that the company's operating income was 38.40 times its interest expenses in that period.

However, in the previous quarter, March 2024, the interest coverage ratio was considerably lower at 2.16, indicating a decrease in the company's ability to cover its interest expenses with operating income. This could be a cause for concern as a ratio below 2 may indicate that the company is having difficulty meeting its interest payments.

Overall, the trend in the interest coverage ratio for Phibro Animal Health Corporation shows some inconsistency over the quarters, with fluctuations between highs and lows. It is important for investors and stakeholders to monitor this ratio closely to assess the company's financial health and ability to manage its debt obligations effectively.