Cohu Inc (COHU)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 1.56 | 2.14 | 2.52 | 3.11 | 2.56 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 0.89 | 1.19 | 1.35 | 1.59 | 2.05 |
From the provided data on Cohu Inc's activity ratios, we observe the following trends:
1. Inventory Turnover: Cohu Inc's inventory turnover has generally been fluctuating over the years. It increased from 2.56 in 2020 to 3.11 in 2021, indicating that the company managed to sell its inventory more efficiently. However, in the following years, the inventory turnover decreased to 2.52 in 2022, 2.14 in 2023, and then significantly dropped to 1.56 in 2024. This decline suggests that Cohu Inc may have been experiencing challenges in selling its inventory at the same rate as before, which could potentially lead to excess inventory levels.
2. Receivables Turnover: The data provided does not show any information on Cohu Inc's receivables turnover for the years 2020 to 2024. This could imply that the company's accounts receivable turnover ratio was not provided or it may have been very low, which can affect the company's cash flow and collection efficiency.
3. Payables Turnover: Similar to receivables turnover, there is no data available for Cohu Inc's payables turnover from 2020 to 2024. The absence of this information prevents us from assessing the company's payment practices and how quickly it settles its suppliers' invoices.
4. Working Capital Turnover: Cohu Inc's working capital turnover has shown a decreasing trend over the years. The ratio decreased from 2.05 in 2020 to 0.89 in 2024. This decline indicates that the company is generating less revenue for each dollar of working capital invested, which could signal inefficiency in managing its working capital resources.
In summary, the analysis of Cohu Inc's activity ratios highlights fluctuations in inventory turnover, lack of data on receivables and payables turnover, and a declining trend in working capital turnover. These trends may suggest potential challenges in managing inventory, receivables, payables, and working capital effectively, which could impact the company's operational efficiency and financial performance.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 233.78 | 170.50 | 144.61 | 117.51 | 142.80 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Activity ratios provide insights into how efficiently a company manages its assets and operations.
1. Days of Inventory on Hand (DOH):
- Cohu Inc's DOH has fluctuated over the years, indicating changes in inventory management.
- A decrease from 142.80 days in 2020 to 117.51 days in 2021 suggests a potential improvement in inventory turnover.
- However, the DOH increased to 233.78 days by 2024, indicating a significant increase in the number of days it takes to sell inventory.
2. Days of Sales Outstanding (DSO):
- The data shows that DSO is not provided for any of the years, which makes it challenging to assess Cohu Inc's collection efficiency.
- Without DSO data, it is harder to gauge how quickly the company collects payments from its customers.
3. Number of Days of Payables:
- Similarly, the information on the number of days of payables is not available for any of the years.
- This makes it difficult to assess how long Cohu Inc takes to pay its suppliers, impacting working capital management.
In conclusion, while the DOH figures indicate fluctuations in inventory management efficiency, the absence of DSO and payable days data limits a comprehensive analysis of Cohu Inc's overall activity ratios. It suggests the need for more detailed financial information to fully evaluate the company's operational efficiency.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 12.50 | 9.97 | 9.50 |
| Total asset turnover | 0.40 | 0.55 | 0.66 | 0.70 | 0.58 |
The fixed asset turnover ratio indicates how efficiently a company is utilizing its fixed assets to generate sales. Cohu Inc's fixed asset turnover has been increasing steadily over the years, from 9.50 in 2020 to 9.97 in 2021 and further to 12.50 in 2022. This indicates that the company is becoming more efficient in generating revenue from its fixed assets.
On the other hand, the total asset turnover ratio measures the company's ability to generate sales from its total assets. Cohu Inc's total asset turnover ratio has shown some fluctuations, with a decrease from 0.70 in 2021 to 0.66 in 2022 and a further decrease to 0.55 in 2023. Finally, in 2024, the total asset turnover ratio dropped significantly to 0.40.
Overall, while Cohu Inc has been improving its efficiency in generating sales from fixed assets, there have been fluctuations in its ability to generate sales from total assets. The drop in total asset turnover in 2024 raises concerns, and further analysis is needed to understand the underlying reasons for this trend.