Amcor PLC (AMCR)
Days of sales outstanding (DSO)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.38 | 7.39 | 7.84 | 7.52 | 6.90 | |
| DSO | days | 83.32 | 49.40 | 46.58 | 48.56 | 52.90 |
June 30, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.38
= 83.32
The Days of Sales Outstanding (DSO) for Amcor PLC demonstrates notable fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the DSO decreased from 52.90 days in 2021 to a low of 46.58 days in 2023, indicating an improvement in the company's collection efficiency and potentially shorter credit cycles during this period. This trend suggests better management of receivables and more effective collection processes over the initial years.
However, in the fiscal year ending June 30, 2024, the DSO rose slightly to 49.40 days, signaling a marginal decline in collection performance relative to the previous year but still remaining below the levels observed in 2021. This small increase may reflect changes in credit policy, customer payment terms, or external factors affecting receivable collection.
The most significant change appears in the year ending June 30, 2025, where the DSO jumps markedly to 83.32 days. This sharp increase indicates a substantial slowdown in receivables collection, which could signal deteriorating credit management, increased credit risk, or potential operational or economic disruptions affecting customer payments. An extended DSO of this magnitude may also exert pressure on the company's cash flow and liquidity position, warranting further investigation into the underlying causes and potential impacts on overall financial health.
Overall, the trend from 2021 through 2023 reflects a period of improving receivables management, but the subsequent escalation in 2025 raises concerns that may need to be addressed to ensure sustainable liquidity and operational efficiency.