Amcor PLC (AMCR)
Number of days of payables
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 3.49 | 4.23 | 4.45 | 3.82 | 3.94 | |
| Number of days of payables | days | 104.63 | 86.19 | 82.03 | 95.67 | 92.75 |
June 30, 2025 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 3.49
= 104.63
The analysis of Amcor PLC’s number of days of payables over the specified period reveals notable fluctuations that reflect changes in the company's accounts payable management and overall liquidity strategy.
As of June 30, 2021, the company maintained an average payables period of approximately 92.75 days. This duration experienced a slight increase over the following year, reaching 95.67 days by June 30, 2022. This increment suggests a modest extension in the time taken to settle payable obligations, potentially indicative of a strategic delay in payments or improved negotiating power with suppliers during that period.
However, by June 30, 2023, the number of days of payables decreased sharply to approximately 82.03 days. This reduction could imply a tightening of payment terms, possibly driven by increased liquidity constraints or a strategic move to improve cash flow management. Such a decrease may also reflect efforts to optimize working capital by accelerating payable settlements.
The upward trend resumes in the subsequent year, with the number of days of payables rising again to 86.19 days as of June 30, 2024. Although still below the level observed in 2022, this increase suggests a gradual shift back toward lengthening payment periods, which could be part of a broader strategy to conserve cash or manage supplier relationships more flexibly.
By June 30, 2025, the number of payables days extends significantly to approximately 104.63 days. This substantial lengthening indicates a tendency to delay payments further, which might be aimed at enhancing liquidity or leveraging extended trade terms. However, sustained increases of this magnitude could also raise concerns regarding the company's supplier relationships or creditworthiness if perceived as overly aggressive payment deferrals.
Overall, the trend in Amcor PLC’s number of days of payables demonstrates periods of both extension and contraction, reflecting a dynamic approach to managing liabilities. While the fluctuations may align with strategic cash flow and working capital considerations, consistent or markedly extended payable periods could carry implications for supplier relations and credit risk that warrant ongoing monitoring.
Peer comparison
Jun 30, 2025