Amcor PLC (AMCR)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 20.44% | 18.66% | 19.58% | 21.44% | 20.34% |
| Operating profit margin | 9.15% | 10.33% | 8.60% | 10.37% | 7.97% |
| Pretax margin | 6.73% | 8.50% | 7.67% | 9.42% | 6.41% |
| Net profit margin | 5.50% | 7.18% | 5.59% | 7.37% | 4.91% |
Amcor PLC's profitability ratios show fluctuations over the past five years. The gross profit margin has varied from 18.66% to 21.44%, peaking in 2021 and then declining slightly in 2024. This indicates the company's ability to manage production costs and pricing strategies.
The operating profit margin has fluctuated between 7.97% and 10.33% over the same period, showing a slight decline in 2024 compared to the previous year. This ratio reflects Amcor's efficiency in managing operating expenses and generating profits from its core operations.
The pretax margin, representing the company's profitability before taxes, varied from 6.41% to 9.42%. The ratio decreased in 2024 compared to the previous year, which may indicate that Amcor faced challenges in managing its tax liabilities and other non-operating expenses.
The net profit margin, which indicates the proportion of revenue that translates into net income, ranged from 4.91% to 7.37%. The ratio decreased in 2024 compared to the previous year, suggesting that Amcor's net profitability declined in the most recent period.
Overall, Amcor PLC's profitability ratios show some fluctuations, with a general trend of decrease in profitability margins in 2024 compared to the previous year. It would be important for the company to assess its cost structures, revenue streams, and operational efficiency to maintain or improve its profitability in the future.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.35% | 8.87% | 7.11% | 7.69% | 6.05% |
| Return on assets (ROA) | 4.42% | 6.16% | 4.62% | 5.46% | 3.72% |
| Return on total capital | 31.98% | 38.03% | 30.97% | 28.40% | 21.75% |
| Return on equity (ROE) | 18.81% | 26.03% | 19.72% | 19.71% | 13.23% |
Amcor PLC's profitability ratios have shown some fluctuations over the past five years. The Operating Return on Assets (Operating ROA) has ranged from 6.05% to 8.87%, with a slight decrease to 7.35% in Jun 30, 2024. This ratio measures the company's operating profit generated per dollar of total assets.
The Return on Assets (ROA) has fluctuated between 3.72% and 6.16%, with a decrease to 4.42% in Jun 30, 2024. This ratio indicates the company's overall ability to generate profit from its assets.
The Return on Total Capital has seen an increase from 21.75% in Jun 30, 2020, to 31.98% in Jun 30, 2024, showing an improving trend in utilizing total capital efficiently to generate returns.
The Return on Equity (ROE) has varied between 13.23% and 26.03%, with a decrease to 18.81% in Jun 30, 2024. This ratio demonstrates how effectively the company is generating profits from shareholders' equity.
Overall, Amcor PLC's profitability ratios indicate a mixed performance over the years, with some ratios showing improvement while others exhibiting fluctuations or declines. It is essential for investors and stakeholders to analyze these ratios in conjunction with other financial metrics to get a comprehensive view of the company's financial health and performance.