Amcor PLC (AMCR)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.39 | 6.31 | 6.23 | 6.43 | 6.69 | 4.20 | 4.05 | 3.89 | 4.03 | 5.48 | 5.62 | 5.86 | 6.07 | 5.84 | 5.74 | 5.71 | 5.42 | 5.26 | 4.75 | ||
| DOH | days | 57.14 | 57.82 | 58.61 | 56.81 | 54.60 | 86.98 | 90.07 | 93.80 | 90.61 | 66.55 | 64.94 | 62.34 | 60.17 | 62.45 | 63.56 | 63.96 | 67.33 | 69.36 | 76.91 |
June 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.39
= 57.14
The Days of Inventory on Hand (DOH) for Amcor PLC have shown fluctuations over the past few years. The company's inventory turnover speed, as indicated by the DOH metric, has ranged from a low of 54.60 days to a high of 93.80 days.
In recent periods, there appears to have been an improvement in inventory management efficiency, as evidenced by the decreasing trend in DOH from the end of 2022 to the mid-year of 2023. However, there was a sharp increase in DOH in the first quarter of 2023, which suggests potential challenges in managing the company's inventory levels.
The average DOH over the period analyzed is approximately 67.15 days. This implies that, on average, it takes Amcor PLC about 67 days to sell its inventory. A lower DOH would indicate a quicker turnover of inventory, which may lead to lower holding costs and better liquidity.
Overall, monitoring and managing the Days of Inventory on Hand is crucial for Amcor PLC to optimize its working capital and operational efficiency. A consistent and optimized inventory turnover ratio is essential for maintaining healthy cash flows and profitability.
Peer comparison
Jun 30, 2024