Financial Analysis Amcor

4371 Words18 Pages
1. Introduction - Business model Amcor Limited(AMC) is one of the largest multinational packaging companies, which builded and developed from Australia. It now has over 300 sites in 43 different countries in the world and with sales of AUD $14 billion. AMC offer its customers with the high standards packaging solutions, reliable service and partnerships built on excellence. AMC has variety of materials for its packaging business. The main product of AMC are packaging for lots of staffs, for instance, food, tobacco, healthcare markets and so on. 2. Strengths, Risks and Opportunities in industry Strengths: As a multinational company, AMC can control its cost by using different raw materials and labor cost in different countries to get…show more content…
Through indicating the profit margin, return on assets and return on equity to measure sales, assets and other factors, shareholders also can know the global profit performance of the firm and indicate that how the condition of company is. Asset Utilization This class of metrics can show how effectively Amcor use its assets. It can help shareholders, creditors and investors know the usage of asset and shareholders also can know management’s operating effectiveness. In addition, show managers where to focus their efforts. So for the shareholders of AMC, it is interesting to take into account the following ratios: receivable turnover, average collection period, inventory turnover, fixed asset turnover and total asset turnover. Liquidity This group of ratios emphasis can easily indicate the Amcor’s capability to meet short term debt obligations. Current ratio and Quick ratio will be calculated in this part. These two ratios are quite similar, short term creditors, such as bankers and suppliers are interested in this class of ratios, because they can measure the short term debt-paying ability of company. Debt Utilization Long term creditors and shareholders are interested in this part of ratios and very carefully to deal with it. It evaluates how the company is using or managing its debt. Debt asset ratio and times interest earned and times interest earned will be calculated in
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