Financial and Accounting Analysis Report: Amcor Limited, ACCY801

This report provides a comprehensive financial and accounting analysis of Amcor Limited, a global leader in packaging solutions. It begins with an introduction to Amcor's business, including its operations and industry sector. The report then assesses the characteristics of the board of directors, including expertise, gender, and remuneration. It examines Amcor's financing decisions, efforts to maintain high corporate governance standards, and the role of the audit firm. The report also analyzes key measures taken to ensure ethical business operations and comments on the significance of major investors' ownership. Finally, it utilizes ratio analysis to evaluate Amcor's financial statements, covering profitability, efficiency, and liquidity, culminating in a concluding summary of the company's performance.

Running head: ACCOUNTING AND FINANCIAL ANALYSIS
Accounting and financial analysis
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

ACCOUNTING AND FINANCIAL ANALYSIS
Table of Contents
Introduction:....................................................................................................................................2
Discussion:.......................................................................................................................................2
Brief summary of company:............................................................................................................2
Table outlining the detail of board of directors:..............................................................................3
Assessment of the characteristics of the board such as board expertise and composition of the
board:...............................................................................................................................................7
Commenting on the financing decision made by Amcor limited:...................................................8
Identifying the efforts taken by Amcor limited for maintaining highest standard of corporate
governance:......................................................................................................................................8
Identifying the audit firm and specifying its state in relation to the accounting information,
remuneration of auditors and independence:...................................................................................9
Identifying key measures taken for ensuring that business operations have incorporates high level
of ethical judgment:.......................................................................................................................10
Commenting on the significance of the ownership stake of the top five investors of Amcor
omitted:..........................................................................................................................................10
Analyzing the financial statements using ratio analysis:...............................................................11
Conclusion:....................................................................................................................................14
References list:...............................................................................................................................15

ACCOUNTING AND FINANCIAL ANALYSIS

ACCOUNTING AND FINANCIAL ANALYSIS
Introduction:
The report demonstrate the overall performance of one of the companies listed on the
Australian stock exchange by conducting a detailed assessment. The chosen company for the
purpose of analysis is Amcor limited, which is a global leader in the production and development
of responsible and high quality packaging for variety of beverage, food, pharmaceutical, personal
care, home and medical device (Amcor.com 2019). The company is engaged in the production of
the rigid container and flexible packaging such as closures and specialty cartons. In this paper,
the detailed of the company has been provided by outlining its recent performance, primary
activities and industry sector. In addition to this, the report also elucidates the assessment of the
board characteristics such as remuneration, independence, expertise, history, gender and age. The
financial performance of Amcor limited has been assessed by applying the tool of ratio analysis,
which helps in evaluating the profitability, efficiency and liquidity position of the company. It is
crucial for organization to carry out its operation by complying with the ethical standards and for
which the business operations of Amcor has been evaluated. The audit firm of the company has
been identified in relation to their independence, remuneration and accounting information.
Discussion:
Brief summary of company:
Amcor is the leading packaging company at the global level and carries out its operation
in more than 40 countries and works in association with premier companies around the world
intended to protect their product and people relying on them. It is the first global packaging

ACCOUNTING AND FINANCIAL ANALYSIS
company that has pledged in the year 2018 to develop all the packaging to be reusable and
recyclable. They assist the business in improving their supply chain and differentiating the
brands. Amcor has the primary activity of converting the raw materials such as aluminum foil,
polymers and fiber into packaging products. There is two reporting segments of the group
comprising of rigid plastics and flexible having four business units. Across all the businesses of
Amcor, there exist opportunities of significant acquisition and organic growth. It also pursues
initiatives of cost productivity and ongoing commercial supported by “The Amcor way” and
there is a substantial potential in the regions and packaging segments (Amcor.com 2019). Amcor
helps leading companies in achieving their sustainable goals by protecting the environment
through responsible operations and packaging of products and engaging actively in global
collaboration. In order to grow in the packaging industry, Amcor has a consistent business model
and strategy, which has sustained, identified and added to its capabilities. The financial results of
the company in the financial year 2018 was solid as the revenue, earning per share and taxes
were comparable to the previous fiscal year.
The operating and cost performance of Amcor has been outstanding and under the
flexible structuring program, earnings of organization improved through benefits. In addition to
this, there has been increment in the profit after tax by USD 22.8 million and as against prior
year, the net financing cost were higher. There has been decrease in the assets and interest
bearing liabilities of Amcor limited. Balance sheet of the company remained strong and cash
generation has continued to be solid during the financial year 2017-2018.
Table outlining the detail of board of directors:
Director Name Gender Education Career Remuneration

ACCOUNTING AND FINANCIAL ANALYSIS
history
1. Graeme
Liebelt
Male He has a
degree of
FTSE, BEc
(Hons) and
FAICD.
Mr. Liebelt
held a
position for
six years as
chief
executive
director and
managing
director at
Orica limited
and held a
number of
other senior
positions such
as chairman
of Inecled ltd
and Managing
director of
Dulux
Australia.
5018928
2. Eva Cheng Female He has a
degree of
MBA and
BA (Hons).
She worked
for Amway
corporation as
an executive
vice president
and for 20
years, she
held
executive
chair position.
Some of the
companies
with which
Mrs Cheng
was
associated
with include
Esprit holding
limited,
Amway
Holing
Berhad and
the link
management
limited
197715

ACCOUNTING AND FINANCIAL ANALYSIS
(Amcor.com
2019).
3. Ron Delia Male He holds a
degree of
BSc and
MBA.
He held
senior
commercial
role in the
company
named
American
national can
Co. and also
worked for a
company
based in New
York named
Mckinsey.
6045703
4. Paul
Brasher
Male Mr.
Brasher
holds a
degree of
FCA and
BEc Hons.
He was a
former non-
executive
director and a
chairman of
audit
compliance
and risk
committee at
Perpetual
limited. Also,
he was the
chairman of
the global
board as well
as the partner
at Pwc. He is
also a
chairman of
Incitec pivot
limited
(Amcor.com
2019).
221807
5. Jeremy
Sutcliffe
Male He holds a
degree of
OAMP,
LLB
(Hons) and
MAICD.
He has held
positions with
many
organizations
such as Sims
Metal
management
196892

ACCOUNTING AND FINANCIAL ANALYSIS
limited,
London and
Sydney,
Baker and
McKenzie
and
associated
companies
and is a
qualified
lawyer in UK
and Australia.
Mr Sutcliffe
was also a
former
director of
Australian
Rugby league
commission
limited and is
a member of
Veolia
environmental
services Pty
limited.
6. Julie
McPherson
Female LLM, M
App Fin
and Dip
Law SAB.
She is
serving
Amcor
since April
2005 as
group
general
counsel and
company
secretary.
Mrs.
McPherson
held legal,
executive and
commercial
position
including
General
counsel and
company
secretary at
Goodman
Fielder
limited before
she joined
Amcor. Also,
she has been a
member of
law
committee
and federal

ACCOUNTING AND FINANCIAL ANALYSIS
government
(Amcor.com
2019).
Assessment of the characteristics of the board such as board expertise and composition of
the board:
The ultimate responsibility of the board of directors is to assure shareholders of superior
returns over time. The board of directors comprised of seven independent non-executive
directors, one company secretary and one chairman and deputy chairman who are independent
non-executive directors. The board of directors of Amcor is committed to demonstrating and
achieving highest standard of corporate governance. In order to meet the shareholder interest, the
board continuously improves and refines the practices and framework of governance. The board
believes that the remuneration program of Amcor would continue to create value of shareholders
and incentivize strong performance of operations. Under the conditions of financial
performance, when it is required to determine the outcome, the board of directors can apply
discretion for excluding the items. The board of directors approves the use of all the financial
institutions by the company and the non-financial goals are the strong focus of the board of
directors. They also provide approval to the company regarding the execution of the policies of
financial management. The board considers all the non-audit services provided by the company
and they perform their auditors in accordance with the objectives and the non-audit services
provision. Furthermore, it is the responsibility of the board to assure that the remuneration
program is well organized and helps in creating strong value for the shareholders. The discretion
is retained by the board for determining the treatment of the event that could arise at any
particular point of time along with exercising the discretion to exclude significant items such as

ACCOUNTING AND FINANCIAL ANALYSIS
RoAFE and EPS. The board for vesting outcome determination determines the value of these
items. Furthermore, the board approves all the treasury risk management policies and the
company in accordance with such policies does monitoring of all the financial risk management.
The board for can nominate certain employees and they would be eligible to make participation
in the SERPP (Senior executive Retention payment plan).
Commenting on the financing decision made by Amcor limited:
There is a rich pipeline of acquisition opportunities for Amcor limited and in the recent
years, the company has effectively completed 26 acquisition and have derived value from the
same. The board of directors approved it on 6th August, 2018 that Bemis would be acquired by
Amcor in all stock combination. It is believed that such transaction would generate stronger
value propositions to the customer, people, environment and investors. The company also
selected to participate in the four packaging segments comprising of rigid plastic containers,
specialty cartons, closures and flexible packaging. IN addition to this, an amount of USD 400
million is typically reinvested by Amcor in the form of capital expenditure that assist in
supporting the organic growth of organization (Amcor.com 2019). In addition, such investment
are considered the primary sources of growth. A consistent growth in the value of shareholders
has been attained because of disciplined reinvestment of the cash generated from the business.
Amcor is also able to enhance the value to its customers and differentiate itself by focusing on
the end markets. The acquisition of Bemis in all stock combination by Amcor would help in
generating stringer value proposition to the customers.

ACCOUNTING AND FINANCIAL ANALYSIS
Identifying the efforts taken by Amcor limited for maintaining highest standard of
corporate governance:
Amcor limited strictly adheres to the council of ASX Corporate governance
recommendation and principles with the continuous efforts of the board to improve and refine
the practices of corporate governance. Any non-audit services conducted are subjected to the
procedures of corporate governance and this helps in ensuring that the objectivity and
impartiality of the auditors are not impacted. Moreover, the board implements a blackout period
where the senior executives, CEO and coworkers are prohibited from trading on the shares of the
company. Remuneration of the senior executives and directors are determined by appointing the
human resource committee and they agree with the board on the framework of determining the
remuneration.
Identifying the audit firm and specifying its state in relation to the accounting information,
remuneration of auditors and independence:
The audit firm of Amcor is Pwc who is responsible conducting the audit of the financial
statements. As retrieved from the annual report of Amcor limited, it is mentioned by the auditor
that there is no contraventions regarding the requirement Corporation act 2001, concerning the
independence of auditors. In relation to the audit, there is no contraventions concerning the
applicable professional code of conduct. They are independent of the group and meet the ethical
requirements of the APES 110 code of ethics for professional accountants and in accordance
with the code of conduct; auditors have fulfilled all the ethical requirements. It is opined by the
auditor that the financial statements of the company is prepared in accordance with the
requirement of the Corporation Act, 2001 and adheres with the Australian accounting standard.

ACCOUNTING AND FINANCIAL ANALYSIS
Moreover, they also view that the financial position and the financial performance of the group
for year ending 30th June, 2018 provided with a true and fair view. The total amount of
remuneration of auditor for the financial year ending 2018 and 2017 is recorded at 8145 and
8897 respectively (figures in USD 1000). This implies that the remuneration of auditor has
decreased in the current year of analysis.
Identifying key measures taken for ensuring that business operations have incorporates
high level of ethical judgment:
The risk management system of Amcor is designed in a manner that would help in
addressing all the issues ethically and incorporate a statement of the group on the purpose,
strategic value, priorities and ethics. A framework for all the policies of the group is incorporated
in the corporate code of conduct and operating mode of “The Amcor way”. The general
principles concerning the independence of the auditors is not undermined and all the services are
performed in accordance with the professional and ethical code of conduct. In all the locations
and action taken by the organization have proper and continuous efforts for addressing the
findings generated for audit. There is regular reporting done concerning all the activities on the
risk framework status through the audit committee. Amcor works in close association with all its
suppliers and customers for addressing the preferences of the customers that is evolving and this
is done by proposing appropriate solutions and making clear judgments. The adoption of the
global fraud prevention policy by Amcor helps in judging all the facts and matter in an ethical
manner and this helps in minimization of the risks associated with fraud and conduct all the
activities ethically (Harris and Mongiello 2014).

ACCOUNTING AND FINANCIAL ANALYSIS
Commenting on the significance of the ownership stake of the top five investors of Amcor
omitted:
The top five investors of AMCOR limited includes HSBC custody nominees, J P Morgan
Nominees Australia Limited, Citicorp Nominees Pty Limited, National Nominees Limited, BNP
Paribas Noms Pty Ltd and BNP Paribas Nominees Pty Ltd. The total number of shares held by
HSBC custody nominees is 487,433,504 and the percentage of ownership stake is 42.09% and
this repre4sents the highest number of shares held by the investor. Total number of shares held
by J P Morgan Nominees Australia Limited is 247,272,980 and the percentage of ownership
stake is 21.35%. In addition to this, total number of shares held by Citicorp Nominees Pty
Limited and National Nominees Limited is 61,192,355 and 47,736,211 respectively. Percentage
of ownership stake for both these investors is 4.12% and 1.25% and this is indication of the fact
that ownership stake of Citicorp Nominees Pty Limited is higher than National Nominees
Limited. Moreover, it is noteworthy to mention that the investor HSBC custody nominees hold
the highest ownership stake in Amcor limited, with the highest number of shares representing
significant ownership stake. The rules of company institution governs the voting rights of the
shareholder and there do not exist any prejudice rules for the rules provision (Aguilera et al.
2015).
Analyzing the financial statements using ratio analysis:
The financial performance of Amcor limited has been analyzed by evaluating its overall
performance in terms of profitability, liquidity, efficiency, capital structure, cash flow
management and market value.

ACCOUNTING AND FINANCIAL ANALYSIS
1) Liquidity position of Amcor limited has been evaluated by computing current and quick
ratio.
2017 2018
Current ratio 0.81 0.69
Quick ratio 0.49 0.40
It is observed that current ratio has declined in the current year, which implies that the ability
of current assets to meet the present obligations has fallen. In addition to this, quick ratio has also
fallen implying that quick assets are not sufficient to meet the current liabilities. Therefore, the
liquidity position of Amcor limited has deteriorated in the current year.
2) Efficiency of asset management has been evaluated by computation of asset turnover and
fixed assets turnover ratio. Asset turnover has remained constant at value of 0.64, which
indicates that the assets ability to generate sales from the business has remained constant.
Furthermore, fixed asset turnover ratio has increased from 1.57 to 1.62 in year 2018. This
has the implication that the ability of organization to increase its sales using fixed assets
has increased.
201
7
201
8
Asset turnover 2.46 2.54
Fixed assets turnover ratio 0.00 0.00
3) Capital structure of the company is evaluated by computing debt and equity ratio. Debt
ratio has fallen in the current year of analysis implying that the financial leverage of
company has reduced. Equity ratio on other hand has increased to 0.12 implying that
investors are optimistic about the performance of company.

ACCOUNTING AND FINANCIAL ANALYSIS
2017 2018
Debt ratio 4.01 2.45
Equity ratio 0.00 0.00
4) Profitability position of Amcor limited has been evaluating by computing return on assets
and return on equity. Return on assets has increased to 0.08, which indicates that assets
are being utilized effectively to generate income. In addition to this, return on equity has
reduced to 0.72 in year 2018 indicating that funds of investors are not utilized effectively.
However, these values should be compared with industry standard for determining the
favorability of the performance.
2017 2018
Return on assets (Net income/ Total assets ) 0.07 0.08
Return on equity ( Net income/Shareholder
equity)
0.77 0.72
5) Market value of Amcor limited has been determined by computing earnings per share and
dividend yield. It is observed from the figure that the earning per share of the company
has increased indicating that investors are getting higher earnings. Looking at the value of
dividend yield, it is observed that value has increased in the current year at 39.5
indicating that investors are being paid higher amount of dividends and hence they are
favorable on making investment in Amcor limited.
2017 2018
Earnings per share 0.53 0.64
Dividend yield 32.72 39.53
6) Cash flow management of Amcor limited is evaluated by computing the cash flow
margin ratio and operating cash flow ratio. It is observed that operating cash flow ratio

ACCOUNTING AND FINANCIAL ANALYSIS
has declined to 0.38 indicating that the cash flow generated from operating activities are
not sufficient to meet the present obligations. Cash flow margin on other hand has
declined in the current year indicating that the ability of company to convert its sales into
cash has reduced.
201
7
201
8
Operating cash flow ratio 0.55 0.38
Cash flow margin ratio 0.11 0.10
7) The financial status and overall performance of Amcor limited is determined by
evaluating the figures of earning per share and earning yield. It is observed from the
table that earning per share has increased to 0.64 in the current year of analysis. An
increase in earnings per share is favorable on part of investors. Earning yield on other
hand has also increased to 0.05 indicating that the company generate increased earnings
per share for every dollar that is invested by the investor.
Conclusion:
The report is prepared to identify the facts and performance of Amcor limited by
retrieving the facts and data from its annual report. Organization prepare its financial statement
in accordance with the relevant accounting standards and it conducts all its activities ethically
and make appropriate judgment concerning the issues faced. The financial performance of
company is favorable as indicated by the ratio analysis. Assets of the company are utilized in an
efficient and effective manner to generate income and sales. In addition to this, the auditor of the
firm has conducted the audit of the financial statements of company by fulfilling the requirement
of ethics in accordance with the prescribed code of conduct. Ethics have been incorporated by

ACCOUNTING AND FINANCIAL ANALYSIS
the organization in their business operations and the way they carry out their business. Therefore,
it can be inferred that in the current scenario, the overall performance of company is favorable
and would help in attracting investment.
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