Amcor PLC (AMCR)
Return on total capital
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,046,000 | 1,258,000 | 1,541,000 | 1,319,000 | 1,347,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 11,728,000 | 3,881,000 | 4,026,000 | 4,082,000 | 4,764,000 |
| Return on total capital | 8.92% | 32.41% | 38.28% | 32.31% | 28.27% |
June 30, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,046,000K ÷ ($—K + $11,728,000K)
= 8.92%
The analysis of Amcor PLC's return on total capital over the specified period indicates a pattern of notable variation. As of June 30, 2021, the return on total capital stood at 28.27%, reflecting a relatively strong efficiency in generating earnings from the company's total invested capital. This metric experienced an increase by June 30, 2022, reaching 32.31%, which signifies an improvement in operational performance and effective deployment of capital resources.
The upward trend continued into June 30, 2023, with the return climbing further to 38.28%, indicating a period of robust profitability and potentially enhanced operational effectiveness. This peak suggests that the company was able to maximize its use of total capital during this period, achieving optimal margins on its invested resources.
However, a decline is observed in the subsequent fiscal year, with the return decreasing to 32.41% by June 30, 2024. While still higher than the levels recorded in 2021 and 2022, this reduction may imply a moderate cooling of operational efficiency or increased capital costs impacting overall profitability.
A significant decline is noted by June 30, 2025, when the return on total capital drops sharply to 8.92%. This decline could be attributed to several factors, including increased capital expenditure, diminished profit margins, or external economic pressures adversely affecting operational performance. The steep reduction suggests a substantial deterioration in how effectively the company is utilizing its total capital base, warranting further investigation into underlying operational or financial challenges during this period.
In summary, the return on total capital for Amcor PLC demonstrated initial growth and peak performance through the 2022-2023 period, followed by a downward trend culminating in a marked decline by mid-2025. The shifts in this ratio underscore the importance of examining specific operational and strategic factors influencing capital efficiency over time.
Peer comparison
Jun 30, 2025