Amcor PLC (AMCR)
Payables turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 12,175,000 | 10,926,000 | 11,969,000 | 11,724,000 | 10,129,000 |
| Payables | US$ in thousands | 3,490,000 | 2,580,000 | 2,690,000 | 3,073,000 | 2,574,000 |
| Payables turnover | 3.49 | 4.23 | 4.45 | 3.82 | 3.94 |
June 30, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $12,175,000K ÷ $3,490,000K
= 3.49
The payables turnover ratio for Amcor PLC over the specified period indicates fluctuations in the company's efficiency in managing its trade payables relative to its cost of goods sold (COGS).
As of June 30, 2021, the payables turnover stood at 3.94, suggesting that the company settled its payables approximately 3.94 times within the fiscal year. This ratio experienced a slight decline the following year, decreasing marginally to 3.82 as of June 30, 2022, which implies a modest elongation in the period taken to settle suppliers' invoices, potentially reflecting a shift in payment practices or supplier terms.
By June 30, 2023, there was a noticeable increase in the ratio to 4.45, indicating that the company was settling its payables more quickly relative to its COGS during this period. This improvement could suggest enhanced liquidity management, better supplier negotiations, or a strategic initiative to reduce outstanding payables. However, in the subsequent year, the ratio decreased to 4.23 by June 30, 2024, suggesting a slight relaxation in the pace of payables settlement, potentially due to operational or strategic considerations.
The latest data point, as of June 30, 2025, shows a further decline to 3.49, marking the lowest ratio within this time frame. This decline implies a lengthening of the payables period, which could be a response to extended payment terms negotiated with suppliers, or a possible approach to optimize cash flows and working capital by delaying payments without adversely impacting supplier relationships.
Overall, the payables turnover ratio for Amcor PLC exhibits variability over the period, with an overall increasing trend until 2023 followed by a gradual decrease in the subsequent years. These fluctuations reflect dynamic management of payables, influenced by operational strategies, supplier negotiations, and broader liquidity considerations.
Peer comparison
Jun 30, 2025