Amcor PLC (AMCR)
Solvency ratios
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 3.16 | 4.69 | 4.27 | 4.31 | 4.26 | 4.22 | 4.22 | 4.28 | 4.22 | 4.07 | 4.01 | 4.35 | 4.27 | 3.98 | 3.84 | 3.67 | 3.61 | 3.57 | 3.49 | 3.51 |
The analysis of Amcor PLC's solvency ratios, based on the provided data, indicates a consistent profile over the period examined. Notably, the Debt-to-Assets ratio, Debt-to-Capital ratio, and Debt-to-Equity ratio are uniformly reported as zero across all dates, suggesting that the company maintained an entirely debt-free capital structure throughout this timeframe. This pattern implies that Amcor PLC did not rely on debt financing relative to its assets, capital, or equity during the periods considered.
In contrast, the Financial Leverage Ratio presents a different perspective on the company’s leverage position. Starting at approximately 3.51 times on September 30, 2020, and gradually increasing to a peak of around 4.35 times on September 30, 2022, the ratio reflects a significant and increasing degree of financial leverage during this period. From this high point, the ratio appears to stabilize and then decline slightly, indicating a reduction in leverage in the subsequent periods, culminating at approximately 3.16 times by June 30, 2025.
The divergence between the zero debt ratios and the elevated financial leverage implies that the ratio is likely calculated using other financial metrics, such as total assets comparatively leveraged against shareholders' equity, rather than traditional debt measures. This could suggest the use of other forms of financing or financial structuring not captured in traditional debt ratios, or possibly that the ratios are derived from different data sources or definitions.
In summary, while traditional leverage and debt ratios portray a scenario of no debt leverage, the high and fluctuating Financial Leverage Ratio points to a significant degree of financial leverage through other means. The current trend indicates a gradual reduction in leverage levels, which could signal a strategic shift towards lower financial risk or a rebalancing of capital structure strategies.
Coverage ratios
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.68 | 4.06 | 4.00 | 3.72 | 3.61 | 3.51 | 3.48 | 4.59 | 5.37 | 5.58 | 7.30 | 7.58 | 7.84 | 8.95 | 8.76 | 8.78 | 8.62 | 7.74 | 6.90 | 6.17 |
The analysis of Amcor PLC’s interest coverage ratio over the specified period indicates a general downward trend, reflecting changes in the company's ability to meet its interest obligations from its operating earnings. Initially, in September 2020, the interest coverage stood at 6.17, which suggests the company earned approximately 6.17 times its interest expenses, indicating a comfortable buffer.
From September 2020 through March 2022, the ratio showed an overall increase, reaching a peak of 8.95 in March 2022. This upward movement illustrates an improvement in the company's capacity to cover interest expenses, potentially due to increased operating earnings or reduced interest burden. During this period, Amcor’s ability to service its debt demonstrated resilience and financial stability.
However, starting from June 2022, the interest coverage ratio displayed a declining trend. The ratio fell to 7.84 in June 2022, then to 7.58 in September 2022, and further to 7.30 at the end of 2022. This decline suggests a gradual reduction in operating earnings relative to interest obligations, possibly indicating increased costs, pressures on profitability, or changes in debt levels.
The downward trend continued into 2023, with the ratio decreasing more notably, reaching 5.58 in March 2023, and declining further to 4.00 by December 2023. Such a reduction signals that the company's earnings were shrinking in relation to its interest expenses, thereby diminishing its safety margin.
In 2024, the ratio experienced a slight stabilization and partial recovery, fluctuating between approximately 3.48 and 4.06. Nevertheless, the interest coverage remained at levels generally considered below what might be viewed as very comfortable, indicating ongoing challenges in maintaining robust earnings relative to interest commitments.
In the latest data for June and September 2024, the ratio slightly increased to 3.61 and 3.72 respectively, before edging upward to 4.00 in December 2024. The projections for the subsequent quarters (March to June 2025) reveal some volatility, with ratios oscillating around the mid-2 to late-3 range, ending at 2.68 in June 2025.
Overall, the trend suggests that Amcor PLC has experienced a notable decline in its interest coverage ratio over the analyzed period. While initially exhibiting strong capacity to cover interest expenses, the company's financial performance indicates a weakening position with increased risk associated with meeting its debt obligations purely from operating income. This trend warrants further scrutiny into factors such as earnings variability, debt levels, and operational efficiencies.