Coherent Inc (COHR)
Interest coverage
| 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 |
| Interest expense (ttm) | US$ in thousands | 288,475 | 299,585 | 302,015 | 298,241 | 286,872 | 256,478 | 224,794 | 170,952 | 121,254 | 86,818 | 56,353 | 54,876 | 59,899 | 71,354 | 86,850 | 99,655 | 89,409 | 69,494 | 46,611 | 23,801 |
| Interest coverage | 0.45 | -0.29 | -0.20 | -0.32 | -0.24 | 0.71 | 0.98 | 1.82 | 3.32 | 4.76 | 7.33 | 7.99 | 6.89 | 5.21 | 3.76 | 1.26 | 0.28 | -0.01 | -0.64 | 3.77 |
June 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $130,400K ÷ $288,475K
= 0.45
Interest coverage ratio is a financial metric that indicates a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio is generally favorable as it suggests that the company is more capable of meeting its interest obligations.
Based on the data provided for Coherent Inc, the interest coverage ratio has fluctuated over the past few quarters. In the most recent quarter ending June 30, 2024, the interest coverage ratio was 0.45, indicating that the company's operating income was only sufficient to cover 45% of its interest expenses. This suggests a lower ability to meet its interest obligations.
Looking back at the trend over the last few quarters, there have been both positive and negative values for the interest coverage ratio. The negative values in some quarters, such as March 31, 2024, December 31, 2023, and September 30, 2023, indicate that the company's operating income was insufficient to cover its interest expenses during those periods.
On the other hand, there were quarters with higher interest coverage ratios, such as December 31, 2022, and March 31, 2022, where the company demonstrated a better ability to cover its interest expenses with its operating income.
Overall, the fluctuating nature of Coherent Inc's interest coverage ratio suggests varying levels of financial stability and ability to meet its debt obligations. It would be important for the company to closely monitor and improve its interest coverage ratio to ensure its long-term financial health and sustainability.
Peer comparison
Jun 30, 2024