Amcor PLC (AMCR)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 7.20 | 6.95 | 7.53 | 7.54 | 7.69 | 7.22 | 7.50 | 7.40 | 7.45 | 6.68 | 7.12 | 6.73 | 6.82 | 7.00 | 7.38 | 7.40 | 7.72 | 6.89 | 6.65 |
| Payables turnover | 5.03 | 6.00 | 5.73 | 6.18 | 5.18 | 4.02 | 3.65 | 3.55 | 3.20 | 4.71 | 4.66 | 5.13 | 4.69 | 5.52 | 5.06 | 5.63 | 4.57 | 5.15 | 4.33 |
| Working capital turnover | 18.87 | 12.05 | 13.86 | 13.06 | 17.34 | 12.45 | 10.06 | 11.66 | 19.21 | 7.99 | 12.25 | 10.34 | 13.80 | 11.30 | 11.98 | 12.55 | 22.22 | 14.02 | 12.06 |
Amcor PLC's inventory turnover has shown a fluctuating trend over the past few quarters, ranging from 3.89 to 6.69 times. A higher inventory turnover indicates that the company is efficiently managing its inventory levels and selling its products quickly. However, the sudden increase in inventory turnover in June 2024 compared to the previous quarter may suggest a more efficient management of inventory.
The receivables turnover ratio has also been varying, ranging from 6.68 to 7.69 times. A higher receivables turnover ratio implies that the company is collecting its receivables quickly. The consistent levels of receivables turnover indicate that Amcor PLC has been efficient in managing its accounts receivables.
On the other hand, the payables turnover ratio has shown some volatility, ranging from 3.20 to 6.18 times. A lower payables turnover ratio indicates that the company is taking longer to pay its suppliers. The fluctuation in this ratio may suggest changes in payment policies or cash flow management practices.
The working capital turnover ratio has also been varying significantly, ranging from 7.99 to 22.22 times. A higher working capital turnover ratio indicates that the company is efficiently using its working capital to generate sales. The fluctuations in this ratio indicate changes in the company's working capital management efficiency over the periods analyzed.
In summary, while Amcor PLC has shown some fluctuations in its activity ratios over the quarters, the company overall demonstrates efficient management of inventory, receivables, payables, and working capital in generating sales and managing its operations.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 57.14 | 57.82 | 58.61 | 56.81 | 54.60 | 86.98 | 90.07 | 93.80 | 90.61 | 66.55 | 64.94 | 62.34 | 60.17 | 62.45 | 63.56 | 63.96 | 67.33 | 69.36 | 76.91 |
| Days of sales outstanding (DSO) | days | 50.71 | 52.53 | 48.48 | 48.39 | 47.45 | 50.53 | 48.69 | 49.30 | 49.01 | 54.67 | 51.26 | 54.20 | 53.53 | 52.12 | 49.48 | 49.33 | 47.31 | 52.97 | 54.91 |
| Number of days of payables | days | 72.58 | 60.87 | 63.73 | 59.05 | 70.51 | 90.86 | 99.98 | 102.82 | 114.16 | 77.44 | 78.37 | 71.16 | 77.79 | 66.11 | 72.18 | 64.82 | 79.78 | 70.94 | 84.39 |
The Days of Inventory on Hand (DOH) for Amcor PLC has shown some fluctuation over the past few quarters, ranging from 54.60 days to 93.80 days. The trend indicates that the company has been able to manage its inventory levels more efficiently in recent quarters, as the number of days of inventory on hand has decreased overall. This could be a positive sign of effective inventory management.
In terms of Days of Sales Outstanding (DSO), the company's performance has also varied, ranging from 47.31 days to 54.91 days. The trend in DSO shows some improvement in collecting receivables more promptly during certain periods, but there are also instances where the days of sales outstanding have increased. Overall, the company may need to focus on optimizing its accounts receivable management to ensure timely receipt of payments.
The Number of Days of Payables for Amcor PLC has been fluctuating as well, with a range of 59.05 days to 114.16 days. A higher number of days of payables may suggest that the company is taking longer to settle its outstanding payables, which can indicate potential liquidity challenges or strain on supplier relationships. Conversely, lower days of payables can indicate a more efficient management of trade credit terms.
In conclusion, a careful analysis of Amcor PLC's activity ratios reveals fluctuations in inventory management, accounts receivable, and accounts payable efficiency over the quarters. It is essential for the company to focus on optimizing these ratios to improve working capital management and overall financial performance.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 3.59 | 3.57 | 3.60 | 3.79 | 3.89 | 3.93 | 4.01 | 4.09 | 3.95 | 3.70 | 3.64 | 3.53 | 3.38 | 3.38 | 3.29 | 3.39 | 3.45 | 3.28 | 2.95 |
| Total asset turnover | 0.80 | 0.81 | 0.82 | 0.85 | 0.85 | 0.85 | 0.85 | 0.85 | 0.83 | 0.78 | 0.78 | 0.77 | 0.74 | 0.75 | 0.74 | 0.75 | 0.76 | 0.73 | 0.66 |
Amcor PLC's fixed asset turnover has remained relatively stable over the periods analyzed, ranging from 2.95 to 4.09. This indicates that the company generates sales efficiently relative to its investment in fixed assets, with a higher fixed asset turnover ratio suggesting better utilization of these assets.
On the other hand, the total asset turnover ratio has also been relatively consistent, ranging from 0.66 to 0.85. This shows how well the company generates sales in relation to its total assets. While the total asset turnover is lower than the fixed asset turnover, it is important to note that both ratios have remained fairly stable over time.
Overall, the consistent performance of both fixed asset turnover and total asset turnover ratios indicates that Amcor PLC has been effectively utilizing its assets to generate sales across the periods examined. This efficiency in asset utilization is a positive sign for the company's operational performance and may indicate effective management of its asset base.