Cohu Inc (COHU)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.17 | 1.21 | 1.32 | 1.43 | 2.14 |
Cohu Inc's solvency ratios reveal a strong financial position with consistently low levels of debt relative to its assets, capital, and equity over the past five years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been at 0.00% from December 31, 2020, to December 31, 2024, indicating that the company has minimal reliance on debt financing and a healthy balance sheet structure.
The Financial leverage ratio has shown a declining trend from 2.14 in December 31, 2020, to 1.17 in December 31, 2024. This reduction signifies that Cohu Inc has been effectively managing its debt levels in relation to its equity, resulting in lower financial leverage and enhanced solvency position.
Overall, the solvency ratios reflect Cohu Inc's disciplined approach to maintaining a solid financial foundation with a prudent use of debt, which may contribute to the company's overall stability and resilience in the face of external economic challenges.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -104.09 | 14.55 | 31.34 | 20.59 | 1.55 |
Interest coverage is a significant financial ratio that indicates a company's ability to pay its interest expenses with its operating income. Cohu Inc's interest coverage has shown fluctuations over the years based on the provided data:
- As of December 31, 2020, Cohu Inc's interest coverage was at a low level of 1.55, indicating that the company's operating income was only 1.55 times its interest expenses.
- By December 31, 2021, the interest coverage improved significantly to 20.59, demonstrating that the company's operating income was more than 20 times its interest expenses, reflecting a healthier financial position.
- The trend continued in December 31, 2022, with a further increase in interest coverage to 31.34, indicating even stronger ability to cover interest expenses.
- However, by December 31, 2023, the interest coverage ratio decreased to 14.55, which although lower than the previous year, still reflects a reasonable ability to meet interest payments from operating income.
- In a concerning turn of events, by December 31, 2024, Cohu Inc's interest coverage ratio fell dramatically to -104.09, indicating that the company's operating income was insufficient to cover its interest expenses, raising red flags about its financial health and sustainability.
Overall, Cohu Inc's interest coverage has been volatile, showing both improvements and declines over the years. It is crucial for the company to maintain a healthy interest coverage ratio to ensure long-term financial stability and solvency.