Coherent Inc (COHR)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 424,149 | 472,464 | 360,779 | 198,412 | 97,426 | 89,982 | 123,535 | 101,466 | 158,981 | 215,595 | 254,735 | 344,711 | 404,867 | 414,699 | 414,684 | 438,330 | 412,489 | 371,404 | 326,759 | 125,826 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,483,300 | 7,814,180 | 7,597,090 | 5,501,080 | 7,574,890 | 7,668,810 | 7,773,070 | 7,103,570 | 7,228,970 | 7,451,080 | 7,361,260 | 7,162,520 | 4,383,280 | 4,384,180 | 4,283,580 | 4,194,370 | 4,132,350 | 3,325,150 | 3,236,810 | 3,046,680 |
| 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% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $424,149K ÷ ($—K + $2,483,300K)
= 17.08%
The analysis of Coherent Inc.'s Return on Total Capital (ROTC) over the provided period reveals significant fluctuations and trends indicative of the company's evolving profitability and capital efficiency. Initially, ROTC was relatively modest at 4.13% as of September 30, 2020, but experienced a notable increase to approximately 10.10% by December 31, 2020, and further growth reaching 11.17% on March 31, 2021. During this period, the company demonstrated an improving ability to generate returns relative to its total capital base.
Following this peak, the ROTC generally stabilized around the 9.0% to 10.5% range through late 2021, indicating consistent operational performance. However, starting in late 2022, a downward trend is observable, with the ratio declining sharply from approximately 4.81% on September 30, 2022, to a low of 1.17% as of March 31, 2024. This decline suggests a reduction in the company's efficiency in generating returns on its invested capital or potential increases in capital base not matched by proportional earnings.
Despite this downward trend, there is a recent uptick in the ROTC, rising to 3.61% on September 30, 2024, and further to 4.75% on December 31, 2024. This resurgence may reflect operational improvements, strategic initiatives, or changes in capital structure that are enhancing profitability relative to total capital. The outlook appears to be optimistic with projections indicating a continued upward trend, reaching 6.05% on March 31, 2025, and a significant increase to 17.08% by June 30, 2025.
Overall, Coherent Inc.'s ROTC demonstrates periods of growth, decline, and recovery, closely aligned with broader operational and strategic shifts. The recent positive trajectory suggests a potential reversal of previous diminishing returns, although the overall pattern indicates periods of volatility that warrant further investigation into underlying factors influencing profitability and capital utilization.
Peer comparison
Jun 30, 2025