Amcor PLC (AMCR)
Quick ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 588,000 | 689,000 | 775,000 | 850,000 | 743,000 |
| Short-term investments | US$ in thousands | — | 16,000 | — | 15,000 | — |
| Receivables | US$ in thousands | 1,846,000 | 1,875,000 | 1,935,000 | 1,864,000 | 1,615,900 |
| Total current liabilities | US$ in thousands | 4,261,000 | 4,476,000 | 5,103,000 | 4,345,000 | 3,974,000 |
| Quick ratio | 0.57 | 0.58 | 0.53 | 0.63 | 0.59 |
June 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($588,000K
+ $—K
+ $1,846,000K)
÷ $4,261,000K
= 0.57
The quick ratio of Amcor PLC has been fluctuating over the past five years, ranging from 0.53 to 0.63. The quick ratio measures a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities without having to sell inventory or secure additional financing.
Amcor's quick ratio has generally been below 1, suggesting that the company may have limited immediate liquidity to cover its current liabilities. A declining quick ratio trend from 2020 to 2022 indicated potentially worsening liquidity position. However, the slight improvement in 2023 and 2024 shows a modest positive development in the company's ability to meet its short-term obligations.
It is important for investors and stakeholders to monitor the quick ratio over time to assess the company's liquidity position and its ability to weather financial challenges. Additionally, comparing Amcor's quick ratio with industry peers can provide further insight into the company's financial health and operational efficiency.
Peer comparison
Jun 30, 2024