Amcor PLC (AMCR)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 12,974,000 | 13,161,000 | 13,390,000 | 13,711,000 | 13,925,000 | 10,155,000 | 10,167,000 | 10,078,000 | 9,825,000 | 13,272,000 | 12,776,000 | 12,372,000 | 12,078,000 | 10,964,200 | 10,583,200 | 10,181,300 | 9,932,000 | 9,576,800 | 8,977,900 | |
| Inventory | US$ in thousands | 2,031,000 | 2,085,000 | 2,150,000 | 2,134,000 | 2,083,000 | 2,420,000 | 2,509,000 | 2,590,000 | 2,439,000 | 2,420,000 | 2,273,000 | 2,113,000 | 1,991,000 | 1,876,000 | 1,843,000 | 1,784,000 | 1,832,000 | 1,819,800 | 1,891,800 | 1,874,400 |
| 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 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $12,974,000K ÷ $2,031,000K
= 6.39
Inventory turnover is a crucial efficiency ratio that measures how many times a company's inventory is sold and replaced over a specific period. For Amcor PLC, the inventory turnover has shown fluctuations over the past 20 quarters, ranging from a low of 3.89 to a high of 6.69.
The average inventory turnover for Amcor PLC over this period is approximately 5.49, indicating that, on average, the company's inventory is turning over about 5.49 times a year. A higher inventory turnover generally indicates that the company is effectively managing its inventory levels, as it is selling products more quickly and efficiently.
The fluctuations in Amcor PLC's inventory turnover could be attributed to various factors such as changes in consumer demand, seasonality in sales, inventory management practices, or disruptions in the supply chain. A downward trend in inventory turnover could potentially signify issues such as overstocking, slow-moving inventory, or inefficiencies in the production process.
It is important for Amcor PLC to closely monitor its inventory turnover ratio and identify trends and patterns to optimize its inventory management practices. By maintaining an optimal balance between carrying enough inventory to meet customer demand and avoiding excess inventory, the company can improve its operational efficiency and ultimately enhance profitability.
Peer comparison
Jun 30, 2024
Jun 30, 2024