Amcor PLC (AMCR)
Return on total capital
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,241,000 | 1,531,000 | 1,264,000 | 1,353,000 | 1,006,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,881,000 | 4,026,000 | 4,082,000 | 4,764,000 | 4,626,000 |
| Return on total capital | 31.98% | 38.03% | 30.97% | 28.40% | 21.75% |
June 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,241,000K ÷ ($—K + $3,881,000K)
= 31.98%
Amcor PLC has demonstrated a fluctuating trend in its return on total capital over the past five years. The return on total capital was highest in June 2023 at 38.03%, indicating that the company generated significant profits in relation to its total capital employed. However, this ratio decreased to 31.98% in June 2024, which is still a healthy return and suggests efficient utilization of capital to generate earnings.
Overall, the return on total capital for Amcor PLC has generally been above 20% over the analyzed period, reflecting the company's ability to effectively leverage its capital resources to generate returns for its investors. This consistent performance is a positive indicator of Amcor's efficiency in managing its capital and generating profits.
Peer comparison
Jun 30, 2024