Amcor PLC (AMCR)
Return on assets (ROA)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 511,000 | 730,000 | 1,048,000 | 805,000 | 939,000 |
| Total assets | US$ in thousands | 37,066,000 | 16,524,000 | 17,003,000 | 17,426,000 | 17,188,000 |
| ROA | 1.38% | 4.42% | 6.16% | 4.62% | 5.46% |
June 30, 2025 calculation
ROA = Net income ÷ Total assets
= $511,000K ÷ $37,066,000K
= 1.38%
The analysis of Amcor PLC’s Return on Assets (ROA) over the specified period reveals fluctuations in the company’s efficiency at generating profit from its asset base. As of June 30, 2021, the ROA stood at 5.46%, indicating a moderate level of asset utilization in generating earnings. In the subsequent year, June 30, 2022, the ROA declined to 4.62%, reflecting a decrease in asset efficiency or profitability relative to total assets.
By June 30, 2023, the ROA experienced an improvement, rising to 6.16%, suggesting enhanced operational performance or better asset management, which resulted in higher earnings relative to the asset base. However, this upward trend was not sustained; by June 30, 2024, the ROA declined sharply to 4.42%, indicating a potential deterioration in profitability or increased asset base that was not matched by proportional profit increases.
The most significant decline occurred by June 30, 2025, with the ROA dropping to 1.38%. This substantial decrease signifies a decline in the company's ability to efficiently utilize its assets to generate earnings. The trend suggests increasing challenges in maintaining previous levels of asset efficiency, which could be influenced by various factors such as changes in market conditions, operational costs, or strategic shifts.
Overall, the ROA over the analyzed period demonstrates considerable volatility, with a peak in 2023 followed by a marked decline, indicating a potential concern regarding the company's asset utilization efficiency in recent years.