Coherent Inc (COHR)
Financial leverage ratio
| Jun 30, 2025 | Jun 30, 2024 | Sep 30, 2023 | Jun 30, 2023 | Sep 30, 2022 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 487,606,000 | 14,488,600 | 13,711,100 | 13,711,100 | 7,844,850 |
| Total stockholders’ equity | US$ in thousands | 2,483,300 | 7,574,890 | 4,987,550 | 7,228,970 | 3,616,480 |
| Financial leverage ratio | 196.35 | 1.91 | 2.75 | 1.90 | 2.17 |
June 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $487,606,000K ÷ $2,483,300K
= 196.35
The financial leverage ratio of Coherent Inc. has exhibited significant fluctuations over the analyzed periods. As of September 30, 2022, the ratio stood at 2.17, indicating that the company employed approximately $2.17 in debt for every dollar of equity, reflecting a moderate level of leverage. By June 30, 2023, the ratio decreased to 1.90, suggesting a reduction in financial leverage and potentially a decrease in reliance on debt financing.
However, between June 30, 2023, and September 30, 2023, the ratio experienced a substantial increase to 2.75, which could be indicative of increased borrowing or a strategic shift toward greater leverage within that period. This heightened leverage may have implications for the company’s financial risk profile, as an increase in debt amplifies the potential impact of earnings volatility on shareholders’ equity.
The subsequent data from June 30, 2024, shows a decline back to 1.91, returning the leverage ratio to levels comparable to those observed in mid-2023, possibly reflecting a partial deleveraging or changes in capital structure. Surprisingly, by June 30, 2025, the ratio soared to an extraordinary 196.35, denoting what appears to be an extreme leverage position. Such a figure suggests a possible anomaly, a one-time accounting event, or extraordinary financing activity, as it is not typical for leverage ratios to reach such high levels under normal circumstances.
Overall, the trend indicates periods of both moderate and high leverage, with an extraordinary spike at the latest reported date. This fluctuation underscores the importance of further investigation into the underlying causes—such as debt issuance, asset valuation changes, or accounting adjustments—to properly assess the associated financial risk and the company’s capacity to manage its leverage over time.
Peer comparison
Jun 30, 2025