Amcor PLC (AMCR)
Inventory turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 12,897,000 | 13,926,000 | 13,737,000 | 12,111,000 | 9,931,500 |
| Inventory | US$ in thousands | 2,031,000 | 2,083,000 | 2,439,000 | 1,991,000 | 1,832,000 |
| Inventory turnover | 6.35 | 6.69 | 5.63 | 6.08 | 5.42 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $12,897,000K ÷ $2,031,000K
= 6.35
Inventory turnover is a crucial financial ratio that measures how efficiently a company manages its inventory. Amcor PLC's inventory turnover has shown a fluctuating trend over the past five years, ranging from 5.42 to 6.69. A higher inventory turnover ratio indicates that the company is selling its goods quickly and efficiently, while a lower ratio suggests possible inventory management issues.
In the most recent year, ending on June 30, 2024, Amcor PLC's inventory turnover was 6.35. This signifies that the company sold and replaced its inventory approximately 6.35 times during the year. It is slightly lower compared to the previous year but remains within a reasonable range.
Overall, Amcor PLC's inventory turnover ratios demonstrate a healthy level of efficiency in managing its inventory levels. The company shows a consistent ability to turn over its inventory, ensuring that stock is not sitting idle for an extended period, which can tie up capital and increase storage costs. Continued monitoring of this ratio will be essential to ensure that inventory management practices remain effective and in line with industry standards.
Peer comparison
Jun 30, 2024