Amcor PLC (AMCR)

Liquidity ratios

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
Current ratio 1.17 1.29 1.25 1.27 1.19 1.27 1.33 1.27 1.15 1.39 1.26 1.31 1.21 1.30 1.28 1.27 1.14 1.23 1.24 1.19
Quick ratio 0.57 0.61 0.57 0.60 0.58 0.59 0.64 0.55 0.53 0.72 0.59 0.64 0.62 0.67 0.66 0.67 0.59 0.62 0.62 0.59
Cash ratio 0.14 0.12 0.11 0.13 0.16 0.13 0.19 0.12 0.15 0.24 0.15 0.16 0.20 0.19 0.21 0.21 0.19 0.15 0.18 0.13

The liquidity ratios of Amcor PLC over the past few years reflect the company's ability to meet its short-term obligations. The current ratio, which measures the company's ability to pay its current liabilities with its current assets, has shown some fluctuation but generally remained above 1, indicating that the company has had sufficient current assets to cover its current liabilities.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Despite some fluctuations, the quick ratio has generally been below 1, suggesting that the company may have had some difficulty meeting its short-term obligations without relying on inventory.

The cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, has also exhibited variability over the periods analyzed. Although it remained below 1 in most cases, indicating that the company may have had limited cash on hand relative to its current liabilities, the cash ratio improved over some periods, signaling a better ability to meet short-term obligations with cash reserves alone.

Overall, while the current ratio indicates a reasonable short-term financial position for Amcor PLC, the lower quick and cash ratios suggest that the company may need to closely monitor its liquidity position, especially in terms of its ability to quickly cover obligations without relying on inventory or other current assets.

Additional liquidity measure

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
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

The cash conversion cycle of Amcor PLC has shown some fluctuations over the past few quarters. A shorter cash conversion cycle indicates that the company is able to efficiently convert its inventory into cash, while a longer cycle suggests a slower turnover of inventory and receivables.

Looking at the data provided, we can see that the cash conversion cycle ranged from a low of 25.46 days to a high of 51.38 days over the last eight quarters. The trend seems to be somewhat inconsistent, with periods of decreases followed by increases in the cycle.

In general, a decreasing cash conversion cycle is positive, as it shows improved efficiency in managing inventory and collecting receivables. On the other hand, an increasing cycle may indicate potential issues with inventory management, sales growth, or collection of receivables.

Further analysis and comparison with industry benchmarks would provide additional insight into the effectiveness of Amcor PLC's working capital management and its overall operational efficiency. Additionally, monitoring the trend over subsequent quarters would help in identifying any persistent issues or improvements in the company's cash conversion cycle.