Amcor PLC (AMCR)
Cash ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 588,000 | 689,000 | 775,000 | 850,000 | 743,000 |
| Short-term investments | US$ in thousands | — | 16,000 | — | 15,000 | — |
| Total current liabilities | US$ in thousands | 4,261,000 | 4,476,000 | 5,103,000 | 4,345,000 | 3,974,000 |
| Cash ratio | 0.14 | 0.16 | 0.15 | 0.20 | 0.19 |
June 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($588,000K
+ $—K)
÷ $4,261,000K
= 0.14
The cash ratio of Amcor PLC has shown a declining trend over the past five years, decreasing from 0.19 in 2020 to 0.14 in 2024. This indicates that the company's ability to cover its short-term liabilities with cash and cash equivalents has weakened over this period. A cash ratio below 1 may suggest that the company could face challenges in meeting its immediate financial obligations solely with its available cash resources. It is important for Amcor PLC to regularly monitor and assess its liquidity position to ensure it remains adequately equipped to handle its short-term financial commitments.
Peer comparison
Jun 30, 2024