Coherent Inc (COHR)
Working capital turnover
| Jun 30, 2025 | Jun 30, 2024 | Sep 30, 2023 | Jun 30, 2023 | Sep 30, 2022 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,810,100 | 4,707,690 | 5,160,100 | 5,160,100 | 3,316,620 |
| Total current assets | US$ in thousands | 152,679,000 | 3,660,100 | 3,252,000 | 3,252,000 | 4,305,190 |
| Total current liabilities | US$ in thousands | 1,794,800 | 1,343,770 | 1,078,750 | 1,078,750 | 1,266,960 |
| Working capital turnover | 0.04 | 2.03 | 2.37 | 2.37 | 1.09 |
June 30, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,810,100K ÷ ($152,679,000K – $1,794,800K)
= 0.04
The working capital turnover ratio for Coherent Inc exhibits notable fluctuations over the specified periods, reflecting shifts in the company's operational efficiency relative to its working capital base. As of September 30, 2022, the ratio stood at 1.09, indicating that the company generated approximately $1.09 in sales for every dollar of working capital employed. This relatively moderate level suggests a baseline operational efficiency at that point.
By June 30, 2023, the ratio significantly increased to 2.37, nearly doubling from the previous period, which indicates an improvement wherein Coherent Inc was able to generate considerably higher sales per dollar of working capital. The ratio remained constant at 2.37 through September 30, 2023, suggesting sustained operational efficiency during this period.
However, a decline is observed by June 30, 2024, with the ratio decreasing to 2.03. Although still substantially higher than the September 2022 figure, this reduction signifies a slight decline in working capital utilization efficiency. This could be attributable to various factors such as operational adjustments, changes in inventory or receivables management, or shifts in sales strategies.
Most markedly, by June 30, 2025, the working capital turnover ratio precipitously drops to 0.04. This dramatic decline indicates a substantial deterioration in operational efficiency, implying that the company generated only a meager amount of sales relative to its working capital during that period. Such a low ratio could suggest several issues, including excessive working capital relative to sales, declining sales volumes, or potential changes in the company's business model or market dynamics.
In summary, the historical trend of Coherent Inc's working capital turnover ratio reveals initial stability, followed by a peak efficiency period around mid-2023, and subsequently a significant decline into 2025, pointing to a potential need for operational review to address underlying causes behind the diminished utilization of working capital in generating sales.
Peer comparison
Jun 30, 2025