Amcor PLC (AMCR)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | |
| Cash conversion cycle | days | 35.27 | 49.48 | 43.35 | 46.16 | 31.54 | 46.65 | 38.78 | 40.28 | 25.46 | 43.78 | 37.83 | 45.38 | 35.91 | 48.46 | 40.86 | 48.47 | 34.85 | 51.38 | 47.43 |
June 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 57.14 + 50.71 – 72.58
= 35.27
The cash conversion cycle of Amcor PLC has varied over the last few quarters, indicating fluctuations in the company's ability to efficiently manage its cash flow and working capital.
On average, the cash conversion cycle ranges from around 25 to 50 days, with the trend showing some periods of improvement followed by a deterioration in efficiency. A lower number of days signifies a shorter time it takes for the company to convert its investments in inventory and other resources into cash from sales, thus indicating more efficient operations.
During the latest period, the cash conversion cycle was 35.27 days, which is an improvement compared to the previous quarter. This suggests that Amcor PLC has been able to manage its working capital more effectively and convert its assets into cash at a quicker pace.
Overall, fluctuations in the cash conversion cycle may be influenced by factors such as sales trends, inventory management, and payment terms with customers and suppliers. Monitoring this metric over time can help assess the company's operational efficiency and financial performance.
Peer comparison
Jun 30, 2024