The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Phibro Animal Health's current ratio for the quarter that ended in Dec. 2023 was 3.12.
Phibro Animal Health has a current ratio of 3.12. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Phibro Animal Health's Current Ratio or its related term are showing as below:
PAHC'
s Current Ratio Range Over the Past 10 Years
Min: 2.54 Med: 3.09 Max: 3.54
Current: 3.12
During the past 13 years, Phibro Animal Health's highest Current Ratio was 3.54. The lowest was 2.54. And the median was 3.09.
PAHC's Current Ratio is ranked better than 72.05% of 1077
companies
in the Drug Manufacturers industry
Industry Median: 1.9
vs PAHC: 3.12
Phibro Animal Health Current Ratio Historical Data
The historical data trend for Phibro Animal Health's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Phibro Animal Health's Current Ratio
For the Drug Manufacturers - Specialty & Generic subindustry, Phibro Animal Health's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Phibro Animal Health's Current Ratio Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Phibro Animal Health's Current Ratio distribution charts can be found below:
* The bar in red indicates where Phibro Animal Health's Current Ratio falls into.
Phibro Animal Health Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
Phibro Animal Health's Current Ratio for the fiscal year that ended in Jun. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Phibro Animal Health (NAS:PAHC) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Phibro Animal Health Current Ratio Related Terms
Thank you for viewing the detailed overview of Phibro Animal Health's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Phibro Animal Health (Phibro Animal Health) Business Description
Phibro Animal Health Corp operates as a diversified animal health and mineral nutrition company. It develops, manufactures, and markets products for a range of food animals comprising poultry, swine, beef and dairy cattle, and aquaculture. The product portfolio of the company includes animal health products such as antibacterials, anticoccidials, nutritional specialty products and vaccines, and mineral nutrition products. The company operates through three segments, Animal Health, Mineral Nutrition, and Performance Products, of which key revenue is derived from the Animal Health segment which relates to the development, manufacturing, and marketing of antibacterials, nutritional specialty products, and vaccines. The entity sells its products in the U.S. and other international countries.
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