Cohu Inc (COHU)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -65,037 | -45,576 | -21,428 | 11,366 | 48,577 | 75,680 | 106,092 | 125,267 | 132,371 | 123,334 | 115,604 | 193,269 | 202,185 | 211,874 | 180,736 | 68,558 | 20,908 | -17,968 | -17,883 | -30,196 |
| Interest expense (ttm) | US$ in thousands | 618 | 1,273 | 1,960 | 2,543 | 3,382 | 3,877 | 4,132 | 4,324 | 4,177 | 3,969 | 3,907 | 4,819 | 6,413 | 8,227 | 10,282 | 11,907 | 13,759 | 15,671 | 17,650 | 19,476 |
| Interest coverage | -105.24 | -35.80 | -10.93 | 4.47 | 14.36 | 19.52 | 25.68 | 28.97 | 31.69 | 31.07 | 29.59 | 40.11 | 31.53 | 25.75 | 17.58 | 5.76 | 1.52 | -1.15 | -1.01 | -1.55 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-65,037K ÷ $618K
= -105.24
Interest coverage ratio measures a company's ability to pay interest on its outstanding debt with its operating income. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
Based on the data provided for Cohu Inc, the interest coverage ratio has shown fluctuations over time. It was negative in the early part of 2020, indicating that the company's operating income was insufficient to cover its interest expenses during that period.
However, there has been a significant improvement in Cohu Inc's interest coverage ratio starting from March 31, 2021, where the ratio increased to 5.76 and continued to rise over the subsequent quarters, reaching its peak at 40.11 on March 31, 2022, indicating a strong ability to cover interest payments.
After reaching the peak, the interest coverage ratio fluctuated but remained relatively high until September 30, 2023. However, towards the end of 2023 and into 2024, the interest coverage ratio started to decline, falling into negative territory by June 30, 2024, and reaching its lowest point at -105.24 on December 31, 2024.
The significant decline in the interest coverage ratio towards the end of 2024 raises concerns about Cohu Inc's ability to cover its interest expenses with its operating income during that period. Further analysis and monitoring of the company's financial performance and sustainability may be needed to understand the reasons behind this sharp decline in the interest coverage ratio and its potential implications for the company's financial health.
Peer comparison
Dec 31, 2024