Amcor PLC (AMCR)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 20.41% | 19.93% | 19.42% | 19.16% | 18.89% | 19.04% | 19.31% | 19.32% | 19.57% | 19.86% | 20.23% | 20.90% | 21.49% | 21.77% | 21.58% | 21.35% | 20.34% | 19.69% | 19.08% |
| Operating profit margin | 9.14% | 8.51% | 8.17% | 10.18% | 10.46% | 9.77% | 10.29% | 8.75% | 8.60% | 9.69% | 10.08% | 10.28% | 10.39% | 10.18% | 9.39% | 9.12% | 7.97% | 7.51% | 7.27% |
| Pretax margin | 6.72% | 6.16% | 5.93% | 8.10% | 8.60% | 8.21% | 9.04% | 7.69% | 7.67% | 8.75% | 9.05% | 9.24% | 9.44% | 8.96% | 8.17% | 7.84% | 6.41% | 6.10% | 5.69% |
| Net profit margin | 5.49% | 4.86% | 4.69% | 6.86% | 7.27% | 6.65% | 7.23% | 5.68% | 5.59% | 6.82% | 7.05% | 7.23% | 7.39% | 6.94% | 6.27% | 6.01% | 4.91% | 4.31% | 4.01% |
Amcor PLC's profitability ratios have shown a mixed trend over the past few quarters. The gross profit margin has fluctuated slightly but generally remained within the range of 19% to 21%, indicating the company's ability to generate profits after accounting for the cost of goods sold.
The operating profit margin has also been variable, with a range of 8% to 10%, reflecting the company's efficiency in managing its operating expenses to generate profits from its core business activities.
However, the pretax margin and net profit margin have shown a decreasing trend, indicating that Amcor PLC's profitability at the pre-tax and net levels has been declining over the periods analyzed. The pretax margin declined from around 9% to 6% and the net profit margin decreased from approximately 7.5% to 5.5%. This suggests that the company may be facing challenges in managing its overall expenses and tax obligations efficiently to sustain its bottom-line profitability.
In conclusion, while Amcor PLC has maintained relatively stable gross and operating profit margins, its pretax and net profit margins have shown a declining trend, highlighting potential profitability challenges that the company may need to address in the near future.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.35% | 6.87% | 6.69% | 8.61% | 8.87% | 8.31% | 8.71% | 7.43% | 7.11% | 7.52% | 7.91% | 7.87% | 7.69% | 7.63% | 6.96% | 6.86% | 6.05% | 5.46% | 4.79% |
| Return on assets (ROA) | 4.42% | 3.92% | 3.84% | 5.80% | 6.16% | 5.65% | 6.12% | 4.83% | 4.62% | 5.29% | 5.54% | 5.53% | 5.46% | 5.20% | 4.65% | 4.52% | 3.72% | 3.13% | 2.64% |
| Return on total capital | 31.98% | 29.34% | 28.71% | 37.40% | 38.03% | 34.70% | 35.70% | 33.38% | 30.97% | 30.46% | 30.77% | 29.23% | 28.40% | 27.46% | 24.73% | 24.69% | 21.75% | 19.72% | 15.79% |
| Return on equity (ROE) | 18.81% | 16.56% | 16.22% | 24.83% | 26.03% | 23.00% | 24.56% | 21.31% | 19.72% | 21.05% | 21.27% | 20.28% | 19.71% | 18.57% | 16.22% | 15.88% | 13.23% | 10.84% | 8.34% |
Amcor PLC's profitability ratios have shown fluctuations over the past few quarters.
1. Operating return on assets (Operating ROA) has ranged from 6.69% to 8.87% in recent quarters, indicating the company's ability to generate operating profits from its assets, with the latest ratio standing at 7.35%. This metric reflects the efficiency of the company's asset utilization in generating operating income.
2. Return on assets (ROA) has fluctuated between 3.84% and 6.16%, with the most recent figure at 4.42%. ROA measures the overall profitability of the company relative to its total assets, showcasing the company's ability to generate profit from its resources.
3. Return on total capital has shown variability, ranging from 27.46% to 38.03%, with the latest ratio at 31.98%. This ratio indicates how efficiently the company is using its total capital to generate profits, encompassing both debt and equity financing.
4. Return on equity (ROE) has also displayed fluctuations from 15.88% to 26.03%, with the most recent figure at 18.81%. ROE reflects the return on shareholders' equity investment in the company and is an important measure of profitability from the perspective of equity investors.
Overall, while there are fluctuations in these profitability ratios, Amcor PLC has generally maintained a solid performance in generating profits from its operations, assets, capital, and equity. However, it is essential for the company to focus on sustaining and potentially improving these ratios to ensure long-term financial health and attractiveness to investors.