Financial Analysis of Amcor Limited Company

Amcor Limited
FIN600 TX 2017
NAME: STUDENT ID:

Student name – ID FIN600 TX 2017
Assignment – Amcor Limited Company
Executive Summary
The financial performance of Amcor Limited is mainly conducted over the period of two fiscal
years and compared with the industry average to understand its financial progress. In addition, the
economic and market condition of Australia is also evaluated, which might affect financial progress
of the organization. The ratios such a profitability, liquidity, efficiency and gearing is mainly used
for the calculation purposes, as it might help in depicting the actual financial position of the
organization over the period of two fiscal years. Therefore, the evaluation of the financial ratios
could help investors make adequate investment decisions by evaluating the future returns and
progress that could be generated from investment.
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Student name – ID FIN600 TX 2017
Assignment – Amcor Limited Company
Contents
1 Introduction...................................................................................................................................3
3 Ratio Analysis...............................................................................................................................5
4 Recommendations and overall assessment...................................................................................8
5 References/Bibliography.............................................................................................................10
Appendices – attached Excel Spreadsheet.........................................................................................12
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Student name – ID FIN600 TX 2017
Assignment – Amcor Limited Company
1 Introduction
1.1 Background and Business
Amcor is one of the largest global packing companies situated in Australia, as it aims in
developing and producing the flexible packaging system used by the organization all around the
globe. In addition, the company has been supporting different types of packaging requirement of
companies such as flexible packing system, specialty cartons, rigid containers and closures.
Moreover, Amcor has been packing for companies such as, pharmaceutical, medical-device,
personal care, home care, food, beverages and other products. The company has been operating
since 1986, where it become Amcor and increased the level of operations, which could be generated
from operations. In the current era the company has a total employee strength of 35,211 people and
has been generating a whooping revenue of US$9 billion in sales by conducing operation in 40
countries with 200 different locations (Amcor.com, 2018). The main product line of the
organization is packaging, which is an essential part of the product delivery, as it contains the actual
product that is being transported to the customers.
2 Company Analysis
2.1 Financial statements, Current Financial performance, economic outlook
The financial statement of Amcor indicates the overall progress, which has been made by
the organization during the fiscal year of 2017 as compared to 2016. The company’s financial health
has improved, which can be seen from the rising net income. In addition, from the evaluation it
could also be detected that the overall total assets have improved adequately, which uplifted the
financial position of the organization. after evaluation the income statement of the organization,
decline in the General and administration expenses can be seen, which was the main reason behind
the increment in operating profit of the company. The overall revenues for the company have
mainly declined during 2017, as compared to 2016, which led to the decline in its cost of sales and
gross profit. The other expense of the company remained same, which mainly helped in increasing
the level of operating income from 575.7 million in 2016 to 752.7 million in 2017 (Amcor.com,
2018). This allowed the organization to minimizing their cash outflow during the fiscal year and led
to the increment in net profits. The further evaluation of the annual report indicated the increment in
total assets, which depicted the financial performance and adherence of the organization to obtain
sustainable growth. Hence, the organization was able to improve the level of income and assets for
supporting its future growth.
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