Finance for Business : Packaging Company Amcor Public Company

Running head: FINANCE FOR BUSINESS
Finance for Business
Name of Students
Name of the University
Authors’ note

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Executive summary:
This report is providing the complete details about an Australian leading packaging
company Amcor Public Company. In the first part of this report shows the basic overview
of the company, after the basic history details this report is providing the individual ratio
analysis of the organizations, through which it can be judged that companies financial,
liquidity, assets, liabilities, dividend all are in quite stable and strong positions. Next to
the report is providing the sensitivity analysis of Net present Value calculation between
basic details and anticipated details. After the sensitivity analysis this report is expressing
the analysis of non-current assets and its effectiveness. In the end part of this report
providing the recommendation letter to the Investors about the financial positions of the
company that may help to make proper investment in this company.

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Table of Contents
I. Introduction:.............................................................................................................3
II. Overview:.............................................................................................................4
2.1 Company’s product..........................................................................................4
2.2 Calculations and Analysis of Ratios:................................................................4
2.3 Analysis the Non-current Assets of the company:.............................................14
2.4 Scenario analysis:.............................................................................................15
2.5 Issuance of Bonds and Shares:...........................................................................21
2.6 Analysis of Price-Earnings ratio and share issuance price :...........................21
III. Recommendation Letter:....................................................................................23
IV. Conclusion:........................................................................................................23
References:...................................................................................................................25

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I. Introduction:
Before investing in any company, the primary and essential thing, which is needed to
notice by an investor, is the financial condition, capabilities to holding a stable position in a
flexible marketing condition, the rate of growth in past few years and also the earnings during
a particular period of such specific companies. For such purpose, the investor needs to
evaluate the Annual report of this company efficiently so that he can able to take proper
decisions at a particular time. This report is particularly made for the purpose, to provide a
complete idea about an ASX nominated company, which is named as Amcor Limited, a
GICS group of industries. This report is particularly indicating the growth, strategies and
different aspects regarding the stability conditions of the company. In the case of finding
those different parts need to evaluate companies’ individual ratios and trend analysis (Benn,
Edwards and Williams 2014).
Amcor public Limited company is a well-known company according to the report of
ASX, which is mainly engaged in manufacturing and developing flexible packaging,
containers, cartons, beverage, medical equipment and other products. Its head office is
situated in Warmley, United Kingdom. This company at present providing employment over
35,211 peoples. This company is mainly divided into two segments, one is flexible
packaging, and the other one is rigid plastics (Anon 2019).
II. Overview:
2.1 Company’s product
Amcor public limited company is mainly engaged in manufacturing two segments,
one is flexible packaging, and the other one is rigid plastics. In the case of flexible packaging,
the company is involved in developing and supplying flexible packaging and specialty in

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folding cartons and in case of rigid plastics, the company mainly providing rigid plastics
packaging (Anon 2019).
The specialty cartons, which are produced by the company, are mainly manufactured
through the plastics materials. Those are used for variety of products, especially for
pharmaceuticals, foods, spirits and also for healthcare products. At present, this company is
also engaged in developing its spirits and wine closures. In 2018, the company introduced
using liquiform technology, which is used for the product packaging that influencing the
marketing demand simultaneously.
2.2 Calculations and Analysis of Ratios:
Liquidity Ratio:
i. Current Ratio:
Figure: Current Ratio

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Analysis: Generally, the current ratio is used to evaluate liquidity condition of the
entity for a particular time. For every company, it would be the aim to maintain its current
ratio equal to 1, in case of ensuring that the company’s current assets are quite enough to
make pay off companies short term liabilities. However, if such ratio shows the position of
lower than 1, and then it’s indicating as the potential failure of the company’s liquidity
condition.
Here the current ratio of Amcor Limited shows the position of less than 1, which
means companies current assets is may not enough to cover its obligations. In the year 2016,
the ratio was 0.875974, while in the year 2017 it was 0.81909 that indicating the ability to
cover companies obligations reduced in 2017 and in case of comparing with 2018 it was like
0.69958, which implies that company’s liquidity condition is in complex situations in case of
covering the short-term obligations. This constant decreasing condition of current ratio is
occurred due to lack in current assets, which indicating the cash position of the company may
not in stable condition.
ii. Acid test or Liquidity ratio: