Coherent Inc (COHR)
Solvency ratios
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 6.00 | 1.85 | 1.87 | 2.67 | 1.91 | 1.89 | 1.89 | 1.90 | 1.90 | 1.89 | 1.92 | 1.93 | 1.79 | 1.77 | 1.79 | 1.55 | 1.58 | 1.91 | 1.74 | 1.80 |
The analysis of Coherent Inc.'s solvency ratios over the period from September 2020 through June 2025 reveals several key insights. Notably, the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio consistently register as zero throughout the entire timeframe. This uniformity indicates that the company maintains no reported long-term or short-term debt, suggesting an absence of leverage or reliance on external borrowings during this period.
The persistent zero levels in these leverage ratios imply that Coherent Inc. is financed entirely through equity or other non-debt sources, which significantly enhances its financial independence and lowers financial risk. Such a capital structure reduces the company's exposure to interest rate fluctuations and refinancing risk, contributing positively to its overall financial stability.
However, the financial leverage ratio values exhibit variability, albeit remaining generally below 2.0 for most of the period. Starting from 1.80 in September 2020, it fluctuates modestly, reaching a peak of 2.67 in September 2024 before dropping back to approximately 1.85 in mid-2025. The significant jump to 6.00 in June 2025 appears inconsistent and may suggest a transient anomaly or data reporting issue, given the otherwise stable pattern.
Overall, the ratios point to a uniquely conservative or debt-free capital structure, with the company predominantly financed through equity and internal resources, reducing its solvency risk. The variation in the financial leverage ratio warrants further investigation to clarify the underlying factors contributing to that aberrant spike. Continual zero readings in debt-related ratios, combined with moderate leverage ratios, reinforce a perception of low financial risk in terms of external liabilities.
Coverage ratios
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.74 | 1.85 | 1.33 | 0.70 | 0.34 | 0.30 | 0.41 | 0.34 | 0.55 | 0.84 | 1.13 | 2.02 | 3.34 | 4.78 | 7.36 | 7.99 | 6.89 | 5.21 | 3.76 | 1.26 |
The interest coverage ratio of Coherent Inc. demonstrates a marked deterioration over the period from September 2020 through June 2025. As of September 30, 2020, the ratio stood at 1.26, indicating limited capacity to cover interest expenses from operating earnings, which posed a potential concern regarding the company's debt servicing ability.
Throughout 2020 and early 2021, the ratio improved significantly, reaching a peak of 7.99 as of September 30, 2021. This suggests that during this period, Coherent Inc. experienced robust operating earnings relative to interest obligations, reflecting a favorable financial position and reduced risk of interest default.
However, post-September 2021, the ratio exhibits a consistent downward trend. By June 30, 2022, the ratio declined to 3.34, and further to 2.02 by September 30, 2022. The decline accelerated in 2023, with the ratio falling below 1 for the first time since the initial period, recorded at 0.84 on March 31, 2023, and decreasing further to 0.34 by September 30, 2023. Such levels indicate that operating income was insufficient to cover interest expenses, highlighting increased financial risk and potential liquidity pressures.
Moving into late 2023 and mid-2024, the ratio shows signs of recovery, increasing to 0.41 at December 31, 2023, and reaching 0.70 at September 30, 2024. This upward trend suggests some improvement in operating earnings relative to interest costs, although the coverage remained weak.
Forecasted data for 2025 indicate a gradual improvement in the ratio, with values of 1.85 and 1.74 projected for March 31 and June 30, 2025, respectively. These levels indicate a partial recovery, with operating income once again providing better coverage of interest expenses, yet still reflecting a relatively narrow margin.
Overall, the company's interest coverage ratio has experienced significant volatility, with a notable decline after 2021. The downward trend suggests worsening ability to meet interest obligations from operating earnings, increasing financial risk. The partial recovery projected in 2025 may signal efforts to stabilize earnings or reduce debt levels; however, the ratio remains near or below critical thresholds regarded as indicative of potential solvency issues.