Amcor PLC (AMCR)
Solvency ratios
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.26 | 4.22 | 4.27 | 3.61 | 3.55 |
Based on the solvency ratios provided for Amcor PLC, it is observed that the company has consistently maintained a debt-free position in terms of its debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio over the last five years. This indicates that the company has not relied on debt financing to fund its operations or investments during this period.
However, the financial leverage ratio has shown an increasing trend over the years, indicating that the company has been utilizing more financial leverage to support its operations. The financial leverage ratio has increased from 3.55 in 2020 to 4.26 in 2024. This suggests that while the company has not taken on debt, it has been increasingly using other forms of financing such as equity and retained earnings to support its operations and investments.
Overall, the solvency ratios suggest that Amcor PLC has been managing its financial position prudently by avoiding excessive debt levels, but it has been gradually increasing its financial leverage to support its growth initiatives. Investors and stakeholders may want to monitor the company's leverage position closely to ensure it remains sustainable and supportive of the company's long-term financial health.
Coverage ratios
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.57 | 5.28 | 7.95 | 8.84 | 4.86 |
Amcor PLC's interest coverage ratio has shown some fluctuations over the past five years. The interest coverage ratio decreased from 8.84 in 2021 to 3.57 in 2024, indicating a potential decrease in the company's ability to cover its interest expenses with its operating income. The ratio was relatively stable between 2022 and 2023, showing values of 7.95 and 5.28, respectively.
A higher interest coverage ratio suggests that the company has more earnings available to cover its interest obligations, indicating a lower risk of default. Conversely, a lower interest coverage ratio may signal increased financial risk and potential difficulties in meeting interest payments.
Overall, it is essential for Amcor PLC to closely monitor its interest coverage ratio to ensure it remains at a healthy level and to sustain its financial stability and ability to meet debt obligations.