Amcor PLC (AMCR)
Return on total capital
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,241,000 | 1,157,000 | 1,138,000 | 1,458,000 | 1,531,000 | 1,474,000 | 1,554,000 | 1,308,000 | 1,264,000 | 1,376,000 | 1,373,000 | 1,359,000 | 1,353,000 | 1,276,100 | 1,185,100 | 1,157,100 | 1,006,100 | 934,500 | 843,200 | |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,881,000 | 3,944,000 | 3,964,000 | 3,898,000 | 4,026,000 | 4,248,000 | 4,353,000 | 3,918,000 | 4,082,000 | 4,517,000 | 4,462,000 | 4,650,000 | 4,764,000 | 4,647,000 | 4,792,000 | 4,687,000 | 4,626,000 | 4,739,600 | 5,339,700 | 5,424,200 |
| 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% |
June 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,241,000K ÷ ($—K + $3,881,000K)
= 31.98%
The return on total capital for Amcor PLC has shown a generally positive trend over the historical period provided. The ratios have consistently remained above 20%, indicating a strong ability of the company to generate returns from the total capital employed in its operations.
There was a noticeable peak in the return on total capital in the third quarter of 2023 at 37.40%, followed by a slight decrease in the subsequent quarter. However, the ratio bounced back in the first half of 2024, reaching levels above 29%.
Overall, the return on total capital for Amcor PLC demonstrates the company's efficiency in utilizing its capital to generate profits, with a clear indication of stable and relatively high returns over the period analyzed. This consistent performance is favorable for investors and indicates the company's ability to effectively use its resources for profitability.
Peer comparison
Jun 30, 2024