Phibro Animal Health Corporation (PAHC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.29 | 0.30 | 0.31 | 0.32 | 0.32 | 0.28 | 0.29 | 0.30 | 0.29 | 0.44 | 0.46 | 0.47 | 0.45 | 0.44 | 0.45 | 0.48 | 0.47 | 0.45 | 0.45 | 0.48 |
| Debt-to-capital ratio | 0.52 | 0.52 | 0.52 | 0.53 | 0.52 | 0.50 | 0.51 | 0.52 | 0.51 | 0.60 | 0.62 | 0.63 | 0.62 | 0.62 | 0.63 | 0.66 | 0.66 | 0.64 | 0.62 | 0.65 |
| Debt-to-equity ratio | 1.10 | 1.08 | 1.10 | 1.12 | 1.10 | 1.00 | 1.03 | 1.07 | 1.04 | 1.50 | 1.62 | 1.69 | 1.60 | 1.65 | 1.71 | 1.97 | 1.96 | 1.79 | 1.64 | 1.84 |
| 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 |
The solvency ratios of Phibro Animal Health Corporation provide insight into the company's ability to meet its long-term financial obligations and manage debt effectively.
1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets financed by debt. The trend shows a slight decrease from 0.32 in December 2019 to 0.29 in June 2024, suggesting an improvement in the company's ability to rely less on debt to fund its operations.
2. Debt-to-capital ratio: This ratio reflects the extent to which the company's operations are funded by debt in comparison to equity. The trend has been relatively stable, ranging from 0.50 to 0.66 over the past few years, indicating a consistent balance between debt and equity financing.
3. Debt-to-equity ratio: This ratio shows the relative contribution of debt and equity to the company's capital structure. The ratio has fluctuated but generally increased from 1.00 in March 2023 to 1.10 in June 2024, indicating a higher reliance on debt compared to equity over time.
4. Financial leverage ratio: This ratio measures the company's financial leverage or the extent to which it is using debt to finance its operations. The trend shows fluctuations but an overall increase from 3.44 in September 2019 to 3.85 in September 2020, before slightly decreasing to 3.62 in March 2024. This suggests that the company has been utilizing more debt to finance its operations.
Overall, the solvency ratios of Phibro Animal Health Corporation reflect a mix of conservative and aggressive debt financing strategies over the analyzed period, with a generally stable debt-to-capital ratio and increasing debt-to-equity ratio. It is important for investors and stakeholders to monitor these ratios to assess the company's financial health and risk profile.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Interest coverage ratio measures a company's ability to pay interest expenses on outstanding debt. A higher interest coverage ratio indicates that a company is more capable of meeting its interest obligations.
Analyzing the interest coverage ratio of Phibro Animal Health Corporation over the past several quarters, we observe fluctuations in the ratio. The ratio reached its peak at 38.40 in June 2024, indicating a significant improvement in the company's ability to cover its interest expenses. However, in the preceding quarter, the ratio dropped substantially to 2.16, reflecting a potential strain on the company's ability to cover interest payments.
The trend over the past quarters reveals that the interest coverage ratio has shown variability, with some quarters demonstrating stronger ratios above 4.0, while others have shown weaker ratios below 3.0. These fluctuations could be indicative of changes in the company's financial performance, profitability, or debt levels.
Overall, while the company has shown periods of strong interest coverage, investors and creditors may closely monitor these fluctuations in the interest coverage ratio to assess Phibro Animal Health Corporation's financial health and its capacity to service its debt obligations.