Amcor PLC (AMCR)
Cash conversion cycle
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 104.06 | 72.60 | 71.79 | 75.13 | 67.84 | 68.57 | 69.00 | 66.44 | 67.49 | 72.80 | 75.58 | 78.79 | 75.93 | 78.04 | 76.35 | 73.76 | 71.75 | 69.56 | 68.59 | 66.57 |
| Days of sales outstanding (DSO) | days | 83.32 | 53.39 | 47.85 | 53.15 | 49.40 | 51.26 | 47.34 | 47.32 | 46.58 | 49.73 | 48.08 | 48.81 | 48.56 | 54.15 | 50.74 | 53.65 | 52.90 | 51.62 | 49.15 | 49.15 |
| Number of days of payables | days | 104.63 | 79.28 | 80.37 | 80.26 | 86.17 | 72.19 | 75.03 | 69.06 | 82.03 | 76.05 | 83.90 | 86.37 | 95.67 | 90.81 | 92.14 | 84.20 | 92.75 | 73.64 | 77.90 | 67.47 |
| Cash conversion cycle | days | 82.75 | 46.71 | 39.28 | 48.03 | 31.06 | 47.65 | 41.30 | 44.70 | 32.03 | 46.48 | 39.76 | 41.24 | 28.82 | 41.37 | 34.95 | 43.22 | 31.89 | 47.54 | 39.84 | 48.25 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 104.06 + 83.32 – 104.63
= 82.75
The analysis of Amcor PLC's cash conversion cycle (CCC) over the period from September 2020 to June 2025 reveals notable fluctuations and trends. The CCC measures the time span between the company's cash outflows for inventory purchases and the inflows from customer payments, serving as an indicator of operational efficiency and working capital management.
Throughout the observed periods, the CCC has experienced both declines and increases. Initially, the cycle decreased from 48.25 days in September 2020 to a low of approximately 28.82 days in June 2022, indicating improved efficiency, likely driven by faster inventory turnover, shorter receivables collection, or extended payable periods. This reduction suggests the company was able to better align its cash inflows and outflows, optimizing working capital management during this timeframe.
However, starting from June 2022, the CCC has exhibited upward movement, reaching approximately 44.70 days by September 2023, and further expanding to 82.75 days by June 2025. The significant jump observed at the end of the period, especially in the latest data point, indicates a substantial deterioration in cash flow management. This could be attributable to extended receivables, slower inventory turnover, or shorter payable periods, or a combination thereof.
Overall, the trend demonstrates a period of operational efficiency improvements followed by a notable decline in cash cycle management. The substantial increase in the CCC at the latest point suggests potential challenges in collection efficiency, inventory management, or longer payment cycles, which may impact liquidity and working capital demands moving forward.
Peer comparison
Jun 30, 2025