Coherent Inc (COHR)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | -6.12% | -11.32% | 11.96% | 12.30% | 2.05% |
| Operating profit margin | 2.18% | -0.76% | 12.97% | 13.34% | 1.74% |
| Pretax margin | -3.29% | -7.30% | 8.82% | 11.70% | -2.81% |
| Net profit margin | -3.54% | -5.33% | 7.35% | 9.87% | -2.95% |
Coherent Inc's profitability ratios have fluctuated over the past five years. The gross profit margin, a measure of a company's ability to generate revenue after accounting for the costs directly associated with production, showed a declining trend from 2.05% in 2020 to -6.12% in 2024. This indicates that the company's cost of goods sold has been increasing at a faster rate than its revenue.
The operating profit margin, which reveals the company's operating efficiency and ability to control costs, improved from 1.74% in 2020 to 2.18% in 2024. This suggests that Coherent Inc has been able to better manage its operating expenses and generate more profit from its core business activities.
The pretax margin, a measure of a company's profitability before tax expenses, experienced fluctuations over the years, ranging from -2.81% in 2020 to 11.70% in 2021. The negative margins in recent years indicate that the company's pre-tax earnings have been insufficient to cover its expenses.
The net profit margin, which reflects how well a company converts revenue into profit after all expenses, also exhibited variability, ranging from -2.95% in 2020 to -3.54% in 2024. A negative net profit margin implies that the company's expenses, including interest and taxes, are significantly impacting its profitability.
Overall, Coherent Inc's profitability ratios reflect mixed performance, with improvements in operating profit margin but challenges in gross profit, pretax, and net profit margins. It may be beneficial for the company to focus on cost management strategies and revenue generation to enhance its overall profitability in the future.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.66% | -0.27% | 5.28% | 6.17% | 0.75% |
| Return on assets (ROA) | -1.08% | -1.89% | 2.99% | 4.57% | -1.28% |
| Return on total capital | 1.04% | -0.74% | 7.31% | 8.74% | 0.60% |
| Return on equity (ROE) | -3.00% | -5.20% | 6.49% | 8.74% | -3.23% |
Coherent Inc's profitability ratios have shown fluctuations over the past five years.
1. Operating return on assets (Operating ROA) has been inconsistent, ranging from a low of -0.27% in Jun 2023 to a high of 6.17% in Jun 2021. The ratio stood at 0.66% in Jun 2024.
2. Return on assets (ROA) has also been volatile, with negative values in recent years. The ratio was -1.08% in Jun 2024, indicating a decline in the company's ability to generate profits from its assets.
3. Return on total capital fluctuated significantly, ranging from -0.74% in Jun 2023 to a peak of 8.74% in Jun 2021. The ratio stood at 1.04% in Jun 2024, showing a moderate return on the company's total capital.
4. Return on equity (ROE) has also displayed inconsistency, with negative values observed in the past five years. The ratio was at -3.00% in Jun 2024, indicating a decrease in the company's profitability from the shareholders' perspective.
Overall, Coherent Inc's profitability ratios suggest a lack of stability and varying performance in generating returns for both assets and equity holders. It is essential for the company to focus on improving these ratios to ensure sustained profitability and shareholder value in the future.