Amcor PLC (AMCR)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 11,728,000 | 3,881,000 | 4,026,000 | 4,082,000 | 4,764,000 |
| ROE | 4.36% | 18.81% | 26.03% | 19.72% | 19.71% |
June 30, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $511,000K ÷ $11,728,000K
= 4.36%
Amcor PLC's return on equity (ROE) exhibits notable fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. In the fiscal year ending June 30, 2021, the ROE was approximately 19.71%, reflecting a relatively stable profitability level relative to shareholders' equity. This figure remained nearly unchanged in the following year, registering a marginal increase to 19.72% as of June 30, 2022, indicating limited variation and suggesting consistent, although moderate, profitability during this period.
A significant increase is observed in the fiscal year ending June 30, 2023, where the ROE jumps to 26.03%. This upward movement indicates an improvement in the company's efficiency in generating profits from shareholders' equity, potentially attributable to operational enhancements, increased margins, or favorable market conditions during that timeframe.
However, the subsequent year shows a reversal of this positive trend, with the ROE declining to 18.81% as of June 30, 2024. Despite remaining above the levels observed in 2021 and 2022, this decrease suggests some erosion in profitability or efficiency, which could be associated with rising costs, market pressures, or other external factors impacting the company's ability to sustain higher returns.
The most dramatic change occurs in the fiscal year ending June 30, 2025, where the ROE plummets sharply to 4.36%. This substantial decline indicates a significant deterioration in the company's ability to generate returns on shareholders' equity, which may be due to factors such as increased write-downs, lower profit margins, extraordinary expenses, or strategic repositioning that adversely affected profitability.
Overall, the trend in Amcor PLC's ROE over this period reflects periods of stability and growth interspersed with phases of decline, culminating in a substantial reduction in the latest fiscal year. This pattern underscores the importance of examining underlying operational, financial, and market factors to understand the drivers behind these fluctuations and to assess the company's ongoing capacity to generate shareholder value.
Peer comparison
Jun 30, 2025