Coherent Inc (COHR)
Cash ratio
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 926,033 | 898,578 | 856,255 | 931,081 | 821,310 | 884,352 | 896,641 | 882,160 | 2,582,370 | 2,600,320 | 2,649,720 | 1,560,180 | 1,591,890 | 1,535,310 | 834,540 | 683,985 | 493,046 | 388,107 | 376,840 | 439,551 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | 394,044 | 458,061 | 15,129 | 15,128 | 35,361 | 35,346 | 41,898 | 116 | — | 120 |
| Total current liabilities | US$ in thousands | 1,343,770 | 1,310,630 | 1,187,770 | 1,083,140 | 1,078,750 | 1,107,460 | 1,132,920 | 1,183,080 | 1,266,960 | 2,123,880 | 2,083,240 | 1,028,660 | 729,589 | 678,837 | 664,474 | 644,893 | 672,893 | 569,171 | 571,599 | 545,777 |
| Cash ratio | 0.69 | 0.69 | 0.72 | 0.86 | 0.76 | 0.80 | 0.79 | 0.75 | 2.04 | 1.22 | 1.46 | 1.96 | 2.20 | 2.28 | 1.31 | 1.12 | 0.79 | 0.68 | 0.66 | 0.81 |
June 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($926,033K
+ $—K)
÷ $1,343,770K
= 0.69
The cash ratio of Coherent Inc has experienced fluctuations over the past few years, indicating variations in the company's ability to cover its short-term liabilities solely with cash and cash equivalents.
Looking at the trend, the ratio was relatively stable around 0.7 to 0.8 from December 2019 to March 2023. However, there was a significant increase in the cash ratio in June 2022, reaching 2.04, followed by further increases in subsequent quarters. This surge in the ratio suggests a substantial buildup in cash and cash equivalents relative to the company's short-term obligations during this period.
Subsequently, the cash ratio began to decline gradually from the peak in December 2022 but remained relatively high compared to the historical average. The ratio dropped below 1.0 in September 2024, indicating a decrease in the company's ability to cover current liabilities exclusively with cash on hand.
While a high cash ratio typically signifies a strong liquidity position, excessively high levels of cash relative to liabilities may indicate underutilization of resources. Conversely, a low cash ratio could signal liquidity concerns and an increased reliance on external financing to meet short-term obligations.
Overall, it is essential for Coherent Inc to strike a balance between maintaining an adequate cash position for liquidity needs and deploying excess cash effectively to generate returns for shareholders. Regular monitoring and assessment of the cash ratio can provide valuable insights into the company's short-term liquidity management.
Peer comparison
Jun 30, 2024