Cohu Inc (COHU)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -64,328 | 49,198 | 130,892 | 132,068 | 21,368 |
| Interest expense | US$ in thousands | 618 | 3,382 | 4,177 | 6,413 | 13,759 |
| Interest coverage | -104.09 | 14.55 | 31.34 | 20.59 | 1.55 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $-64,328K ÷ $618K
= -104.09
The interest coverage ratio for Cohu Inc has shown varying trends over the past five years. In December 2020, the interest coverage was low at 1.55, indicating that the company's ability to cover its interest expenses with operating income was weak. However, there was a significant improvement in December 2021, with the ratio increasing to 20.59, suggesting a much healthier position in terms of covering interest costs.
The trend continued to improve in the following years, reaching 31.34 in December 2022, indicating a strong ability to meet interest obligations with operating profits. However, there was a slight dip in December 2023 to 14.55, although the ratio still remained above the acceptable threshold.
The most recent data point in December 2024 shows a concerning negative interest coverage ratio of -104.09. This suggests that Cohu Inc's operating income is insufficient to cover its interest expenses, raising red flags about the company's financial health and ability to meet its debt obligations.
It is important for Cohu Inc to closely monitor and manage its interest coverage ratio to ensure it remains at a healthy level to avoid financial distress and maintain investor confidence.
Peer comparison
Dec 31, 2024