What is the significance of formatting source code properly in PHP?

Properly formatting source code in PHP is significant for readability, maintainability, and collaboration with other developers. Consistent indentation, spacing, and commenting make the code easier to understand and debug. It also helps to follow coding standards and best practices, resulting in more efficient and error-free code.

```php
<?php

// Badly formatted code
function myFunction(){
echo "Hello World";
}

// Properly formatted code
function myFunction() {
    echo "Hello World";
}

?>