Amcor PLC (AMCR)
Financial leverage ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 16,524,000 | 17,003,000 | 17,426,000 | 17,188,000 | 16,442,000 |
| Total stockholders’ equity | US$ in thousands | 3,881,000 | 4,026,000 | 4,082,000 | 4,764,000 | 4,626,000 |
| Financial leverage ratio | 4.26 | 4.22 | 4.27 | 3.61 | 3.55 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,524,000K ÷ $3,881,000K
= 4.26
The financial leverage ratio of Amcor PLC has shown a slight increase from 3.55 in 2020 to 4.26 in 2024. This indicates that the company's reliance on debt to finance its operations and growth has been increasing over the years. A higher financial leverage ratio suggests that a larger portion of the company's assets is funded by debt, which can amplify returns but also increase financial risk. It is important for investors and stakeholders to closely monitor the company's ability to manage its debt levels and ensure sustainable growth without jeopardizing its financial stability.
Peer comparison
Jun 30, 2024