Coherent Inc (COHR)

Solvency ratios

	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
Debt-to-assets ratio	0.28	0.28	0.28	0.31	0.31	0.31	0.31	0.32	0.24	0.12	0.12	0.15	0.20	0.21	0.25	0.27	0.42	0.43	0.43	0.43
Debt-to-capital ratio	0.44	0.43	0.43	0.47	0.46	0.45	0.46	0.47	0.34	0.20	0.21	0.22	0.28	0.28	0.30	0.33	0.51	0.52	0.52	0.52
Debt-to-equity ratio	0.77	0.77	0.76	0.87	0.85	0.83	0.85	0.90	0.52	0.26	0.27	0.28	0.39	0.40	0.44	0.48	1.05	1.10	1.08	1.09
Financial leverage ratio	2.78	2.72	2.68	2.80	2.75	2.69	2.72	2.76	2.17	2.14	2.16	1.88	1.91	1.91	1.74	1.80	2.52	2.53	2.52	2.52

The solvency ratios of Coherent Inc, including the debt-to-assets ratio, debt-to-capital ratio, debt-to-equity ratio, and financial leverage ratio, provide insights into the company's ability to meet its long-term financial obligations.

Over the period under review, the debt-to-assets ratio and debt-to-capital ratio have remained relatively stable, indicating that the company has maintained a consistent level of debt in relation to its assets and capital structure. However, it is important to note that both ratios have fluctuated within a certain range, suggesting some variability in the company's debt management.

The debt-to-equity ratio indicates the proportion of debt financing relative to equity financing in the company's capital structure. Coherent Inc's debt-to-equity ratio has shown some fluctuations over the period, indicating changes in the company's reliance on debt versus equity to finance its operations. The trend reflects variations in the company's financial leverage and risk profile.

The financial leverage ratio measures the extent to which the company uses debt to finance its operations compared to equity. Coherent Inc's financial leverage ratio has been relatively stable over the period, although there have been some fluctuations. A higher financial leverage ratio indicates a higher level of financial risk due to increased debt financing.

Overall, analyzing these solvency ratios provides valuable insights into Coherent Inc's financial health and risk exposure relating to its debt levels and capital structure. It is essential for investors and stakeholders to monitor these ratios to assess the company's ability to meet its long-term financial obligations and manage its financial risks effectively.

Coverage ratios

	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
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

The interest coverage ratio for Coherent Inc has displayed significant fluctuations over the past few quarters. The ratio measures the company's ability to cover its interest expenses with its operating profits. A ratio below 1 indicates that the company is not generating enough operating income to cover its interest expenses.

In the latest quarter, the interest coverage ratio was 0.45, indicating that Coherent Inc's operating profits were only able to cover 45% of its interest expenses. This is a concerning sign as it suggests a high financial risk and potential difficulties in meeting its debt obligations.

Looking at the trend over the past few quarters, the interest coverage ratio has been volatile, with some periods showing ratios well above 1 (indicating healthy coverage) and others showing ratios below 1 (indicating insufficient coverage).

It is important for stakeholders and investors to monitor this ratio closely as a consistently low interest coverage ratio can signal financial distress and potential liquidity issues for the company. Further analysis of Coherent Inc's financial position and profitability is recommended to better understand the reasons behind the fluctuations in the interest coverage ratio.