Coherent Inc (COHR)
Return on total capital
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 130,400 | -87,382 | -60,391 | -94,596 | -68,686 | 183,342 | 219,434 | 311,300 | 403,061 | 412,893 | 412,878 | 438,330 | 412,489 | 371,404 | 326,759 | 125,826 | 25,481 | -416 | -29,622 | 89,750 |
| Long-term debt | US$ in thousands | 4,026,450 | 4,082,660 | 4,137,010 | 4,219,370 | 4,234,960 | 4,349,920 | 4,422,820 | 4,494,280 | 1,897,210 | 928,745 | 942,579 | 956,377 | 1,313,090 | 1,323,400 | 1,408,790 | 1,468,100 | 2,186,090 | 2,213,180 | 2,228,210 | 2,332,610 |
| Total stockholders’ equity | US$ in thousands | 5,210,120 | 5,335,450 | 5,470,900 | 4,831,990 | 4,987,550 | 5,239,440 | 5,178,790 | 5,009,040 | 3,616,480 | 3,627,760 | 3,537,410 | 3,458,010 | 3,406,170 | 3,325,150 | 3,236,810 | 3,046,680 | 2,076,800 | 2,017,910 | 2,065,700 | 2,131,190 |
| Return on total capital | 1.41% | -0.93% | -0.63% | -1.05% | -0.74% | 1.91% | 2.29% | 3.28% | 7.31% | 9.06% | 9.22% | 9.93% | 8.74% | 7.99% | 7.03% | 2.79% | 0.60% | -0.01% | -0.69% | 2.01% |
June 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $130,400K ÷ ($4,026,450K + $5,210,120K)
= 1.41%
Coherent Inc's return on total capital has experienced fluctuations over the past few quarters. The return on total capital was negative in some quarters, indicating that the company did not generate enough profit to cover the cost of both equity and debt capital.
In recent quarters, the return on total capital has shown improvement, with positive values indicating that the company has been more efficient in generating returns from its total capital employed. The return on total capital peaked at 9.22% in the first quarter of 2022, but has since fluctuated within a range of 1.41% to 9.22%.
It is important for Coherent Inc to continue monitoring and improving its return on total capital to ensure sustainable profitability and efficient use of its capital resources. A consistent and improving trend in this ratio can indicate effective management of both equity and debt capital to drive higher returns for the company and its stakeholders.
Peer comparison
Jun 30, 2024