Coherent Inc (COHR)
Debt-to-capital ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.44 | 0.46 | 0.34 | 0.28 | 0.51 |
June 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,026,450K ÷ ($4,026,450K + $5,210,120K)
= 0.44
The debt-to-capital ratio of Coherent Inc has fluctuated over the past five years, indicating changes in the company's capital structure and debt levels. The ratio was 0.44 as of June 30, 2024, decreasing from the previous year's ratio of 0.46. This suggests a lower proportion of debt to total capital in the most recent period.
Comparing to the ratio of 0.51 in June 30, 2020, it appears that Coherent Inc has successfully reduced its reliance on debt financing and strengthened its capital structure over the past few years. The significant decrease in the ratio from 0.51 in 2020 to 0.28 in 2021 was particularly noteworthy, indicating a substantial improvement in the company's debt position and capitalization.
However, it is important to note that the ratio increased in 2023 to 0.46 before declining again in 2024. This fluctuation may suggest changes in the company's financial strategy or the timing of debt repayments and capital infusions.
Overall, the downward trend in the debt-to-capital ratio since 2020 signals Coherent Inc's efforts to manage its debt levels prudently and optimize its capital structure for long-term stability and growth. Furthermore, the company's ability to adapt its financing mix in response to changing market conditions underscores its financial flexibility and resilience.
Peer comparison
Jun 30, 2024