Amcor PLC (AMCR)
Solvency ratios
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.26 | 4.22 | 4.22 | 4.28 | 4.22 | 4.07 | 4.01 | 4.41 | 4.27 | 3.98 | 3.84 | 3.67 | 3.61 | 3.57 | 3.49 | 3.51 | 3.55 | 3.46 | 3.15 | 3.08 |
Over the past several quarters, Amcor PLC has consistently maintained a debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio of 0.00, indicating that the company has not used debt to finance its operations. However, the financial leverage ratio has fluctuated over the periods, ranging from 3.08 to 4.41.
The financial leverage ratio reveals that the company's average level of financial leverage over the period was 3.70. This indicates that, on average, Amcor PLC has funded its operations with a higher proportion of debt compared to equity, with a ratio greater than 3.0 indicating a higher reliance on debt financing.
The increasing trend in the financial leverage ratio from 3.08 in December 2019 to 4.41 in September 2022 suggests that the company has been gradually increasing its reliance on debt to fund its operations and investments. While a higher financial leverage ratio can amplify returns through leverage, it also increases financial risk as the company becomes more vulnerable to economic downturns or interest rate fluctuations.
Overall, while Amcor PLC has not utilized debt significantly based on traditional solvency ratios, the upward trend in the financial leverage ratio indicates a potential shift towards a higher reliance on debt financing over the periods analyzed. It is important for investors and stakeholders to monitor this trend to assess the company's risk profile and financial stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.57 | 3.52 | 3.49 | 4.61 | 5.28 | 5.50 | 7.13 | 7.35 | 7.95 | 8.88 | 8.86 | 8.88 | 8.84 | 7.88 | 6.89 | 6.19 | 4.86 | 4.52 | 3.98 |
Interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates a stronger ability to meet interest obligations. Looking at the interest coverage trend for Amcor PLC over the past few quarters, we observe a relatively stable and healthy performance. The interest coverage ratio has consistently ranged between 3.49 and 8.88, showing that the company has been able to cover its interest payments multiple times over with its operating income.
The interest coverage ratio was at its lowest in the most recent quarter at 3.57, indicating a slight decrease in the company's ability to cover interest expenses compared to the previous quarter. Despite this slight dip, the ratio remains above 3, which is generally considered a minimum threshold for adequate coverage.
Overall, the trend of interest coverage for Amcor PLC suggests that the company has been managing its interest obligations effectively and maintaining a strong financial position. It is important to monitor this ratio in conjunction with other financial metrics to assess the company's overall financial health and performance.