Coherent Inc (COHR)
Profitability ratios
Return on sales
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 25.76% | 34.47% | 33.31% | 32.16% | 30.93% | 29.73% | 30.69% | 30.43% | 31.36% | 33.06% | 33.92% | 36.28% | 38.44% | 38.81% | 38.36% | 38.66% | 38.54% | 39.14% | 39.73% | 35.52% |
| Operating profit margin | 6.71% | 8.35% | 6.70% | 4.82% | 2.62% | 0.21% | 0.95% | 0.45% | 1.60% | 4.81% | 6.13% | 9.36% | 12.49% | 12.27% | 11.76% | 12.48% | 12.95% | 12.23% | 12.34% | 5.75% |
| Pretax margin | 1.61% | 2.99% | 2.36% | -0.80% | -3.14% | -8.50% | -7.86% | -8.07% | -6.89% | -1.51% | -0.12% | 3.63% | 8.50% | 10.07% | 11.17% | 12.09% | 11.35% | 9.86% | 8.31% | 0.95% |
| Net profit margin | 0.85% | 1.17% | 0.68% | -1.88% | -3.98% | -6.22% | -5.84% | -5.92% | -5.03% | -1.13% | -0.19% | 2.70% | 6.04% | 7.40% | 8.28% | 8.76% | 8.59% | 8.30% | 6.39% | 0.19% |
The analysis of Coherent Inc.'s profitability ratios over the specified periods reveals notable trends and shifts in the company's operational effectiveness and overall financial performance.
Gross Profit Margin:
Throughout the period, the gross profit margin experienced an initial increase from approximately 35.52% on September 30, 2020, reaching a peak of 39.73% as of December 31, 2020. This upward trend persisted through early 2021, maintaining levels around 39%, before gradually declining starting mid-2022. By June 30, 2023, the margin had decreased significantly to approximately 31.36%, and further declined to 30.43% as of September 30, 2023. Thereafter, marginal fluctuations occurred, with a slight recovery to 30.69% in December 2023, and an upward trend resuming through 2024—reaching approximately 33.31% in December 2024 and peaking around 34.47% by March 2025. Overall, the gross margin exhibits a declining trend from late 2020 to mid-2023, followed by a modest recovery.
Operating Profit Margin:
The operating profit margin shows a similar trajectory but with more pronounced fluctuations. It initially improved from 5.75% in September 2020 to over 12% by December 2020 and early 2021. However, subsequent periods experienced significant erosion, with margins dwindling below 5% by March 2023, and turning negative as early as December 2022, reaching lows of -8.07% in September 2023. Temporary improvements are observed, such as a marginal recovery to 8.35% in March 2025, but these are interspersed with periods of severe decline, indicating challenges in managing operating expenses or revenue pressures that negatively impact profitability.
Pre-Tax Margin:
Pre-tax profitability follows a similar pattern, starting at approximately 0.95% in September 2020, then increasing to over 12% by September 2021. Nonetheless, from late 2022 onward, the pre-tax margin declined sharply, turning negative in December 2022 and remaining weak through most of 2023. Slight positive movement occurs in late 2024, with the margin turning positive again at 2.36% in December 2024, and slightly improving further to 2.99% in March 2025. This illustrates substantial fluctuations in profitability before and after tax considerations, potentially driven by varying operating costs or non-operating factors.
Net Profit Margin:
The net profit margin reveals a turbulent albeit improving pattern from historically near-zero or negative in the early pandemic phase (2020) to positive territory in late 2021 and 2022, with margins reaching a high of approximately 8.76% in September 2021. Despite this, the margin declined again to negative levels by late 2022 and into 2023, with losses deepening to around -5.92% in September 2023, reflecting ongoing profitability challenges. However, recent data indicates an emerging recovery, with the margin slightly positive at 0.68% in December 2024 and further improving modestly to 1.17% in March 2025, signaling a potential stabilization or turnaround in bottom-line profitability.
Summary:
Overall, Coherent Inc.'s profitability ratios depict a company that experienced initial margin expansion into early 2021, followed by a sustained decline through 2022 and early 2023, with losses turning significant at the operating, pre-tax, and net profit levels. Nevertheless, recent periods suggest signs of renewed profitability, particularly in 2024 and early 2025, indicating possible operational improvements or strategic adjustments. This pattern underscores the importance of external market conditions, cost management, and revenue realization in influencing the company's profitability trajectory.
Return on investment
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.62% | 3.23% | 2.50% | 1.64% | 0.85% | 0.07% | 0.30% | 0.16% | 0.60% | 1.65% | 1.93% | 2.62% | 5.28% | 5.11% | 4.91% | 6.08% | 6.17% | 5.85% | 6.31% | 2.91% |
| Return on assets (ROA) | 0.33% | 0.45% | 0.26% | -0.64% | -1.29% | -1.97% | -1.84% | -2.13% | -1.89% | -0.39% | -0.06% | 0.75% | 2.55% | 3.08% | 3.46% | 4.26% | 4.10% | 3.97% | 3.27% | 0.10% |
| Return on total capital | 17.08% | 6.05% | 4.75% | 3.61% | 1.29% | 1.17% | 1.59% | 1.43% | 2.20% | 2.89% | 3.46% | 4.81% | 9.24% | 9.46% | 9.68% | 10.45% | 9.98% | 11.17% | 10.10% | 4.13% |
| Return on equity (ROE) | 1.99% | 0.83% | 0.48% | -1.71% | -2.48% | -3.73% | -3.48% | -4.06% | -3.59% | -0.74% | -0.11% | 1.46% | 4.57% | 5.46% | 6.18% | 6.62% | 6.46% | 7.60% | 5.70% | 0.17% |
The analysis of Coherent Inc.'s profitability ratios from September 2020 through June 2025 reveals significant fluctuations and a discernible trend over the examined period.
Operating Return on Assets (Operating ROA) experienced notable volatility with an initial increase from 2.91% in September 2020 to a peak of approximately 6.31% by December 2020, thereafter maintaining elevated levels until September 2021. The ratio remained relatively stable around 5-6% until mid-2022, after which a progressive decline ensued, reaching a low of 0.16% in September 2023. Subsequently, recovery was observed, culminating in approximately 2.62% by June 2025, indicative of regained operational efficiency.
Return on Assets (ROA) displayed a contrasting trajectory. Initial positive performance in late 2020 (up to approximately 3.97%) diminished sharply starting in late 2021, entering negative territory by March 2023, where it reached -1.89%. This downward trend persisted into 2024, with negative ratios reaching as low as -2.13%. Notably, a partial rebound began in late 2024, with ROA turning slightly positive again at around 0.45% in June 2025, suggesting a recovery in overall asset profitability.
Return on Total Capital initially showed robust figures, peaking at 11.17% in March 2021, then declining steadily through 2022 and into 2023, reaching a low of 1.43% in September 2023. The ratio remained subdued during this period but demonstrated a significant upturn in 2024 and early 2025, rising sharply to 17.08% in June 2025. This indicates an improved ability to generate returns from the total capital employed recently.
Return on Equity (ROE) exhibited a declining trend over the period, with negative values emerging in late 2022 and persisting through 2023 and portions of 2024. The ratio declined from modest positive values (e.g., 0.17% in September 2020) to negative territory, reaching lows of -4.06% in September 2023. However, beginning in late 2024 and into mid-2025, a positive trend has reemerged, with ROE reaching 1.99% by June 2025, reflecting a restored capacity to generate equity returns.
Overall, Coherent Inc.'s profitability ratios show signs of impairment starting around mid-2022, characterized by declining asset and equity profitability. The recent data suggests a partial recovery beginning in late 2024, with notably improved combined returns as indicated by the rising return on total capital and positive turn of ROE. These trends may reflect strategic adjustments or operational improvements following a challenging period.