Coherent Inc (COHR)
Return on total capital
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 96,121 | -68,686 | 403,061 | 412,489 | 25,481 |
| Long-term debt | US$ in thousands | 4,026,450 | 4,234,960 | 1,897,210 | 1,313,090 | 2,186,090 |
| Total stockholders’ equity | US$ in thousands | 5,210,120 | 4,987,550 | 3,616,480 | 3,406,170 | 2,076,800 |
| Return on total capital | 1.04% | -0.74% | 7.31% | 8.74% | 0.60% |
June 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $96,121K ÷ ($4,026,450K + $5,210,120K)
= 1.04%
Coherent Inc's return on total capital has fluctuated over the past five years. In 2024, the return on total capital was 1.04%, indicating a marginal profitability in utilizing its total capital. This marks a significant improvement from the previous year, where the company experienced a negative return of -0.74%, suggesting a loss-making scenario. The highest return on total capital was observed in 2021 at 8.74%, demonstrating strong efficiency in generating profits relative to the total capital employed. However, this performance was not sustained in the subsequent years, with a decline to 7.31% in 2022 and a further drop to 0.60% in 2023.
The variability in Coherent Inc's return on total capital suggests fluctuations in the company's profitability and efficiency in utilizing its total capital resources over the years. Further analysis is advisable to understand the factors influencing these fluctuations and to identify areas for improvement in capital utilization and profitability.
Peer comparison
Jun 30, 2024