Amcor (AMCRY) Interest Coverage : 2.99 (As of Dec. 2023)

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What is Amcor Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Amcor's Operating Income for the three months ended in Dec. 2023 was $266 Mil. Amcor's Interest Expense for the three months ended in Dec. 2023 was $-89 Mil. Amcor's interest coverage for the quarter that ended in Dec. 2023 was 2.99. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Amcor's Interest Coverage or its related term are showing as below:

AMCRY' s Interest Coverage Range Over the Past 10 Years
Min: 2.32 Med: 4.73 Max: 9.26
Current: 3.92

AMCRY's Interest Coverage is ranked worse than
65.71% of 312 companies
in the Packaging & Containers industry
Industry Median: 7.215 vs AMCRY: 3.92

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Amcor Interest Coverage Historical Data

The historical data trend for Amcor's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Amcor Interest Coverage Chart

Amcor Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Interest Coverage

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4.44

5.36

9.25

9.26

4.84

Amcor Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															4.38	3.86	5.80	3.51	2.99

Competitive Comparison of Amcor's Interest Coverage

For the Packaging & Containers subindustry, Amcor's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Amcor's Interest Coverage Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Amcor's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Amcor's Interest Coverage falls into.

Amcor Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Amcor's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Amcor's Interest Expense was $-290 Mil. Its Operating Income was $1,404 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,116 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	1404	/	-290
	=	4.84

Amcor's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Amcor's Interest Expense was $-89 Mil. Its Operating Income was $266 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,506 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	266	/	-89
	=	2.99

The higher the ratio, the stronger the company's Financial Strength is.

Amcor (OTCPK:AMCRY) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Amcor Interest Coverage Related Terms

Thank you for viewing the detailed overview of Amcor's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Amcor (AMCRY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » Amcor PLC (OTCPK:AMCRY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

AMCR:USA AMCCF:USA 485B:Germany A1CR34:Brazil AMC:Australia

Address

83 Tower Road North, Warmley, Bristol, GBR, BS30 8XP

Website

https://www.amcor.com

Amcor is a global manufacturer of flexible and rigid plastic packaging and provides packaging solutions to the food, beverage, pharmaceuticals, medical, household, personal care, and industrials sectors. Operations span more than 40 countries and over 200 locations. Around half of group sales are derived from North America, one quarter from Europe, and the remainder from emerging markets. Amcor operates two distinct businesses: flexibles and rigids. Flexibles accounts for about 80% of earnings and produces plastic, aluminium, and fibre-based packaging. Rigids accounts for about 20% of earnings and consists primarily of hot-fill and cold-fill polyethylene terephthalate bottling solutions in the North American and Latin American markets.