Coherent Inc (COHR)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.72 | 2.71 | 2.88 | 2.99 | 3.01 | 3.08 | 3.02 | 2.87 | 3.40 | 1.99 | 2.00 | 2.97 | 4.15 | 4.26 | 3.22 | 3.09 | 2.66 | 2.80 | 2.78 | 3.22 |
| Quick ratio | 1.32 | 1.41 | 1.44 | 1.59 | 1.60 | 1.63 | 1.64 | 1.57 | 2.59 | 1.53 | 1.75 | 2.61 | 3.11 | 3.19 | 2.17 | 2.01 | 1.68 | 1.55 | 1.51 | 1.75 |
| 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 |
Coherent Inc's liquidity ratios have shown fluctuations over the past few quarters. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, has generally been above 2, indicating a healthy level of liquidity. However, there was a notable decrease in the current ratio in the most recent quarter compared to the prior quarter.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also demonstrates a similar trend of fluctuation, but generally stays above 1. This suggests that the company has an adequate level of liquid assets to meet its short-term obligations.
The cash ratio, which provides an even stricter measure of liquidity by only considering cash and cash equivalents to current liabilities, has shown variability but has mostly been above 1. This indicates that Coherent Inc has sufficient cash on hand to cover its immediate liabilities.
Overall, while the current and quick ratios have been relatively stable over time, the company's cash ratio has shown more variability. It is important for Coherent Inc to closely monitor all its liquidity ratios to ensure that it can meet its short-term financial obligations effectively.
Additional liquidity measure
| 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 conversion cycle | days | 121.12 | 134.12 | 131.39 | 122.41 | 125.76 | 147.34 | 163.51 | 186.86 | 140.53 | 145.79 | 135.55 | 140.10 | 135.98 | 132.89 | 137.79 | 137.15 | 154.99 | 176.56 | 203.02 | 289.65 |
The cash conversion cycle of Coherent Inc has shown fluctuations over the past few quarters. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
Looking at the trend from Dec 2019 to Jun 2024, there seems to have been improvements in the efficiency of Coherent Inc's cash conversion cycle recently. The cycle decreased from a high of 289.65 days in Sep 2019 to 121.12 days in Jun 2024, indicating that the company has been managing its working capital more effectively.
While there were fluctuations, overall, the trend shows a downward trajectory in the cash conversion cycle, which is generally positive as it signifies that the company is able to generate cash flows from its operations more efficiently.
It is important for Coherent Inc to continue monitoring and managing its cash conversion cycle to ensure optimal working capital management and maximize cash flow generation from its operational activities.