Cohu Inc (COHU)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 19.58% | 26.58% | 29.94% | 11.67% | 2.21% |
| Operating profit margin | 6.90% | 15.50% | 21.24% | 0.52% | -9.30% |
| Pretax margin | 7.30% | 15.64% | 20.27% | -2.11% | -12.93% |
| Net profit margin | 4.49% | 11.96% | 17.64% | -2.21% | -12.38% |
Cohu Inc's profitability ratios have shown a mixed performance over the past five years. The gross profit margin has fluctuated, starting at a low of 2.21% in 2019, then increasing to 29.94% in 2021 before declining to 19.58% in 2023. This indicates that the company's ability to generate profit from its core business operations has varied significantly.
The operating profit margin has experienced a similar trend, with a significant improvement from negative figures in 2019 to 21.24% in 2021. However, it dropped to 6.90% in 2023, suggesting that the company's operating efficiency has weakened recently.
The pretax margin has also fluctuated, reaching a low of -12.93% in 2019, improving to 20.27% in 2021, and then decreasing to 7.30% in 2023. This indicates variations in the company's ability to generate profit before taxes relative to its total revenue.
The net profit margin has shown a similar pattern, with the company moving from negative margins in 2019 to positive margins in the following years. However, the net profit margin declined to 4.49% in 2023, suggesting that Cohu Inc's profitability after accounting for all expenses and taxes has weakened compared to the previous year.
Overall, Cohu Inc's profitability ratios indicate a mixed performance in recent years, with fluctuations in margins suggesting changes in the company's ability to generate profit from its operations. Further analysis and investigation into the factors driving these changes would be necessary to understand the company's financial health and future prospects.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.76% | 10.23% | 16.01% | 0.30% | -4.86% |
| Return on assets (ROA) | 2.45% | 7.89% | 13.29% | -1.27% | -6.47% |
| Return on total capital | 5.00% | 13.07% | 20.16% | 0.08% | -6.30% |
| Return on equity (ROE) | 2.96% | 10.43% | 18.96% | -2.69% | -14.43% |
Cohu Inc's profitability ratios have shown fluctuations over the past five years.
1. Operating return on assets (Operating ROA) has decreased significantly from 16.01% in 2021 to 3.76% in 2023, indicating a decline in the company's efficiency in generating operating income from its assets.
2. Return on assets (ROA) has also shown a decreasing trend, dropping from 13.29% in 2021 to 2.45% in 2023. This suggests a decrease in the company's overall profitability relative to its total assets.
3. Return on total capital has followed a similar pattern, declining from 20.16% in 2021 to 5.00% in 2023. This ratio indicates the company's ability to generate a return for both equity and debt holders.
4. Return on equity (ROE) has decreased from 18.96% in 2021 to 2.96% in 2023, indicating a decline in profitability for the company's shareholders.
Overall, the profitability ratios of Cohu Inc have experienced a downward trend in recent years, reflecting potential challenges in generating profits from both operating activities and total capital employed. The company may need to focus on improving operational efficiency and profitability to enhance shareholder value and sustain long-term growth.