Phibro Animal Health Corporation (PAHC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The analysis of Phibro Animal Health Corporation’s solvency ratios over the specified period reveals several key insights.
First, the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio consistently register as zero throughout all reported intervals, from September 2020 through June 2025. This indicates that the company’s reported financial data suggests an absence of debt, or perhaps that debt levels are negligible or not disclosed during this period. Such a pattern implies that Phibro Animal Health appears to operate with zero leverage, relying predominantly on internal funding or equity, and not utilizing debt financing.
In conjunction, the financial leverage ratio exhibits a decreasing trend from a high of 4.10 in September 2020 to approximately 3.44 by June 2023. Although the ratio fluctuates somewhat over time, the consistent decrease indicates a reduction in the proportion of assets financed through debt relative to equity, reinforcing evidence of minimal or declining leverage. Notably, the ratio significantly increases to 5.21 at the end of 2024 before slightly decreasing again by mid-2025.
Altogether, these ratios suggest that Phibro Animal Health maintains a very conservative capital structure characterized by little to no debt, thus minimizing financial risk associated with leverage. The increasing trend in the financial leverage ratio toward late 2024 could point to a temporary shift or a change in capital structure, yet overall, the company's solvency profile remains robust with low financial leverage and no apparent reliance on debt funding.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.85 | 2.16 | 1.89 | 1.93 | 1.15 | 1.56 | 1.60 | 1.71 | 2.79 | 2.84 | 3.75 | 4.98 | 5.42 | 5.65 | 5.38 | 5.75 | 6.68 | 7.02 | 6.76 | 6.06 |
The interest coverage ratio of Phibro Animal Health Corporation has demonstrated a declining trend over the analyzed period. As of September 30, 2020, the ratio stood at approximately 6.06, indicating that the company's operating earnings were sufficient to cover its interest expenses over six times. This level reflects a comfortable margin of safety and suggests a relatively low risk of interest payment difficulties during that period.
Throughout the subsequent quarters, the ratio experienced fluctuations but generally showcased a downward trajectory. By September 30, 2021, the ratio decreased to about 5.75, maintaining a healthy buffer. However, starting in late 2021 and into 2022, a more pronounced decline ensued, with the ratio dropping to approximately 3.75 by the end of 2022, and further to approximately 2.84 by the end of March 2023. At this level, the company's earnings are roughly three times its interest obligations, indicating manageable but increasingly tighter coverage.
This downward trend accelerated into 2023 and 2024, with ratios falling below 2, reaching as low as approximately 1.15 on June 30, 2024. A ratio near 1 indicates that operating earnings are just sufficient to cover interest expenses, signifying heightened financial risk and reduced financial flexibility. Some fluctuations occurred afterwards, with ratios slightly improving to about 1.93 in September 2024 and edging higher to approximately 2.85 by June 2025.
Overall, the data underscores a significant erosion in Phibro Animal Health Corporation’s interest coverage capacity over the analyzed period. The decline from above 6 to below 2 suggests increased vulnerability to interest obligations, potentially reflecting softer operating earnings, increased debt levels, or both. The trend warrants close monitoring as it impacts the company's financial stability, interest burden, and future borrowing capacity.