Coherent Inc (COHR)
Profitability ratios
Return on sales
| Jun 30, 2025 | Jun 30, 2024 | Sep 30, 2023 | Jun 30, 2023 | Sep 30, 2022 | |
|---|---|---|---|---|---|
| Gross profit margin | 35.16% | 30.93% | 31.36% | 31.36% | 38.16% |
| Operating profit margin | 9.21% | 2.62% | 0.98% | 1.59% | 3.51% |
| Pretax margin | 1.62% | -3.14% | -6.89% | -6.89% | 8.50% |
| Net profit margin | 0.85% | -3.32% | -5.03% | -5.03% | 7.08% |
The analysis of Coherent Inc.'s profitability ratios over the specified periods indicates a landscape of significant fluctuations and some signs of recovery towards recent fiscal years.
The gross profit margin demonstrates a decline from 38.16% as of September 30, 2022, to a low of 30.93% as of June 30, 2024. Although there is a modest improvement to 35.16% by June 30, 2025, the margin remains below the initial level observed in late 2022. This trend suggests a potential decrease in manufacturing efficiency, rising costs, or pricing pressures impacting the company's ability to maintain higher gross profitability.
Operating profit margins reveal a more pronounced deterioration, moving from 3.51% in September 2022 to a negative figure of -6.89% by June 30, 2023. This negative trend persists through September 2023, indicating ongoing operational challenges. However, by June 30, 2024, the operating margin shows signs of stabilization and improvement, reaching 2.62%, and further increasing to 9.21% by June 30, 2025. This progression reflects enhanced operational efficiency, cost management, or revenue growth initiatives.
Pre-tax margins exhibit a similar pattern, beginning at 8.50% in September 2022, then falling sharply into negative territory at -6.89% during mid-2023 and remaining negative through September 2023. The margin improves gradually in subsequent periods, reaching 1.62% by June 30, 2025. The positive ratio in the latest period indicates a return to pre-tax profitability levels, albeit with residual volatility.
Net profit margins follow a comparable trajectory, initially at 7.08% as of September 2022, declining into negative territory at -5.03% during mid-2023 and later in September 2023. The margin remains negative in subsequent periods but shows significant recovery, turning positive at 0.85% by June 30, 2025. This turnaround signifies that net profitability is improving, driven by operational and pre-tax gains.
In summary, Coherent Inc. faced substantial profitability pressures during the period from late 2022 into mid-2023, reflected notably in negative operating, pre-tax, and net profit margins. However, recent data suggests a recovery phase, particularly from June 2024 onward, with margins approaching or exceeding break-even levels. The evolving trend underscores the company's ongoing efforts to manage costs and enhance profitability amid prior challenges.
Return on investment
| Jun 30, 2025 | Jun 30, 2024 | Sep 30, 2023 | Jun 30, 2023 | Sep 30, 2022 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.11% | 0.85% | 0.37% | 0.60% | 1.48% |
| Return on assets (ROA) | 0.01% | -1.08% | -1.89% | -1.89% | 2.99% |
| Return on total capital | 0.00% | 1.63% | 1.01% | -0.95% | 3.22% |
| Return on equity (ROE) | 1.99% | -2.06% | -5.20% | -3.59% | 6.49% |
The analysis of Coherent Inc.'s profitability ratios over the specified period reveals fluctuations and trends indicating evolving operational performance and financial efficiency.
Operating Return on Assets (Operating ROA): The metric experienced a decline from 1.48% as of September 30, 2022, to 0.60% on June 30, 2023, and further decreased to 0.37% by September 30, 2023. However, an increase was observed in the subsequent period, reaching 0.85% on June 30, 2024. A significant decline is noted again, with Operating ROA falling to 0.11% as of June 30, 2025. This pattern suggests periods of operational strain with some recovery attempts, though overall performance remains subdued.
Return on Assets (ROA): The ROA was 2.99% on September 30, 2022, followed by a transition into negative territory at -1.89% on June 30, 2023, and remaining negative at the same level on September 30, 2023. Improvement is noted by June 30, 2024, with a slight negative ROA of -1.08%. By June 30, 2025, ROA approaches neutrality at 0.01%, indicating a stabilization near break-even levels.
Return on Total Capital: The ratio was 3.22% at the end of September 2022 but declined to -0.95% by June 30, 2023. A moderate recovery occurred, with the ratio rising to 1.01% by September 30, 2023, and further improving to 1.63% on June 30, 2024. However, it diminished again, reaching 0.00% by June 30, 2025, reflecting marginal or breakeven profitability with fluctuations over time.
Return on Equity (ROE): The ROE stood at 6.49% as of September 30, 2022, but then declined sharply to -3.59% by June 30, 2023, and further to -5.20% as of September 30, 2023. Partial recovery is seen with a rise to -2.06% on June 30, 2024. By June 30, 2025, the ROE shows a positive move, reaching 1.99%, indicating a return to profitability for shareholders after a period of loss.
In summary, Coherent Inc.'s profitability ratios exhibit considerable variability, with periods of negative returns across multiple metrics, especially within 2023. The data indicates a challenging profitability environment during some intervals, followed by gradual improvements, culminating in near-neutral or positive results by mid-2025. The trends suggest ongoing efforts toward operational recovery and higher efficiency, but the company has yet to consistently sustain robust profitability levels across all measures.