Coherent Inc (COHR)
Return on equity (ROE)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -156,154 | -259,458 | 234,759 | 297,552 | -67,029 |
| Total stockholders’ equity | US$ in thousands | 5,210,120 | 4,987,550 | 3,616,480 | 3,406,170 | 2,076,800 |
| ROE | -3.00% | -5.20% | 6.49% | 8.74% | -3.23% |
June 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-156,154K ÷ $5,210,120K
= -3.00%
The Return on Equity (ROE) is a measure that indicates how effectively a company is utilizing its shareholders' equity to generate profits. Coherent Inc's ROE has fluctuated over the past five years, with negative ROE values in 2020, 2021, and 2024 and positive values in 2022 and 2023.
The negative ROE values in 2020, 2021, and 2024 suggest that during those years, Coherent Inc's net income was insufficient to cover the shareholders' equity, resulting in a loss for the shareholders. This could be due to various reasons such as high debt levels, operational inefficiencies, or poor financial management.
The positive ROE values in 2022 and 2023 indicate that during those years, Coherent Inc was able to generate profits in excess of the shareholders' equity. This suggests efficient utilization of funds and good profitability.
Overall, Coherent Inc's ROE has been volatile, with fluctuations indicating inconsistencies in the company's performance in terms of generating profits relative to shareholders' equity. Further analysis would be needed to understand the underlying reasons for these fluctuations and to assess the company's overall financial health and sustainability.
Peer comparison
Jun 30, 2024