Coherent Inc (COHR)
Interest coverage
| 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 |
| Interest expense | US$ in thousands | 288,475 | 286,872 | 121,254 | 59,899 | 89,409 |
| Interest coverage | 0.33 | -0.24 | 3.32 | 6.89 | 0.28 |
June 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $96,121K ÷ $288,475K
= 0.33
The interest coverage ratio for Coherent Inc has been fluctuating over the past five years. In June 2024, the interest coverage ratio was at 0.33, indicating a decline in the company's ability to cover its interest expenses with its earnings. This is a significant decrease compared to the previous year, where the ratio was at -0.24 indicating that the company's earnings were not sufficient to cover its interest expenses.
In the year 2022, the interest coverage ratio improved significantly to 3.32, showing that the company's earnings were able to cover its interest expenses more than three times over. This positive trend continued in 2021 with an even higher interest coverage ratio of 6.89, indicating a strong ability to meet its interest obligations.
However, in 2020, there was a decrease in the interest coverage ratio to 0.28, signaling a decrease in the company's ability to cover its interest expenses with its earnings, similar to the current ratio in 2024.
Overall, Coherent Inc's interest coverage has shown variability over the past five years, with both improvements and declines in its ability to cover interest expenses with earnings. Monitoring this ratio closely is important to assess the company's financial health and ability to meet its debt obligations.
Peer comparison
Jun 30, 2024