Amcor PLC (AMCR)
Current ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,965,000 | 5,308,000 | 5,853,000 | 5,266,000 | 4,535,000 |
| Total current liabilities | US$ in thousands | 4,261,000 | 4,476,000 | 5,103,000 | 4,345,000 | 3,974,000 |
| Current ratio | 1.17 | 1.19 | 1.15 | 1.21 | 1.14 |
June 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,965,000K ÷ $4,261,000K
= 1.17
Amcor PLC's current ratio has fluctuated over the past five years, ranging from a low of 1.14 in 2020 to a high of 1.21 in 2021. The current ratio measures the company's ability to meet short-term obligations with its current assets.
With a current ratio of 1.17 as of June 30, 2024, Amcor PLC has slightly more current assets than current liabilities. This indicates that the company may have enough liquidity to cover its short-term debts. However, it is worth noting that the ratio has decreased compared to the previous year, when the current ratio was 1.19.
While a current ratio above 1 suggests that the company has sufficient current assets to cover its current liabilities, a decreasing trend in the ratio over time could be a cause for concern. It may indicate that the company's liquidity position is weakening or that its current liabilities are growing faster than its current assets.
Further analysis of the components of current assets and liabilities, as well as comparison with industry benchmarks, would provide deeper insights into Amcor PLC's liquidity position and financial health.
Peer comparison
Jun 30, 2024