Cohu Inc (COHU)

Interest coverage ratio is an important financial metric that indicates a company's ability to cover its interest obligations with its operating profit. A higher interest coverage ratio is generally considered healthier as it signifies that the company is more capable of meeting its interest payments.

Analyzing Cohu Inc's interest coverage ratio over the past five years, a pattern emerges. The interest coverage ratio has been consistently positive, indicating that the company has been able to comfortably meet its interest obligations from its operating profits.

In the most recent year, as of December 31, 2023, Cohu Inc's interest coverage ratio stands at 14.55, a decrease from the peak of 31.34 in December 2022. Despite the decline, the ratio remains at a healthy level, indicating that the company's operating profits are still significantly higher than its interest expenses.

It is noteworthy that in 2020 and 2019, Cohu Inc had very low and negative interest coverage ratios, raising concerns about its ability to cover interest payments with operating profits. However, the company has made significant improvements in this aspect in the subsequent years, achieving consistently strong interest coverage ratios.

Overall, based on the trend observed in Cohu Inc's interest coverage ratio, the company appears to have a solid financial position with the ability to comfortably service its debt obligations. It is crucial for investors and stakeholders to monitor this metric to assess the company's financial health and ability to meet its debt obligations in the future.

Peer comparison

Dec 31, 2023