Amcor PLC (AMCR)
Cash ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 827,000 | 588,000 | 689,000 | 775,000 | 850,000 |
| Short-term investments | US$ in thousands | — | — | 16,000 | — | 15,000 |
| Total current liabilities | US$ in thousands | 6,987,000 | 4,261,000 | 4,476,000 | 5,103,000 | 4,345,000 |
| Cash ratio | 0.12 | 0.14 | 0.16 | 0.15 | 0.20 |
June 30, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($827,000K
+ $—K)
÷ $6,987,000K
= 0.12
The cash ratio of Amcor PLC over the period from June 30, 2021, to June 30, 2025, demonstrates a general declining trend. As of June 30, 2021, the cash ratio stood at 0.20, indicating that the company's cash and cash equivalents covered 20% of its current liabilities at that time. By June 30, 2022, the ratio experienced a slight decrease to 0.15, which further diminished to 0.16 on June 30, 2023. The decline continued through June 30, 2024, when the cash ratio reached 0.14, and persisted into June 30, 2025, reaching 0.12.
This downward trajectory suggests that Amcor PLC’s cash holdings relative to its current liabilities have become less substantial over the analyzed period. The declining cash ratio indicates a reduced level of liquidity in terms of cash and cash equivalents in relation to immediate liabilities. While the ratio remains above zero, the consistent decrease may imply that the company is holding proportionally less cash or has increased its current liabilities without a commensurate increase in cash holdings.
In summary, the cash ratio trend from 2021 to 2025 reflects a gradual reduction in liquidity buffer in terms of cash, which could indicate a shift in liquidity management strategies, utilization of cash for investments or operational needs, or changes in the composition of current liabilities. Continuous monitoring of this ratio in conjunction with other liquidity and solvency ratios would be necessary to fully assess the company's liquidity health and risk profile.
Peer comparison
Jun 30, 2025