Cohu Inc (COHU)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 49,198 | 76,301 | 102,995 | 123,834 | 130,892 | 121,855 | 117,843 | 193,844 | 198,757 | 198,555 | 163,955 | 48,222 | 624 | -33,239 | -34,921 | -48,731 | -52,226 | -94,560 | -83,253 | -54,169 |
| Interest expense (ttm) | US$ in thousands | 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 | 20,556 | 20,733 | 15,744 | 10,473 |
| Interest coverage | 14.55 | 19.68 | 24.93 | 28.64 | 31.34 | 30.70 | 30.16 | 40.22 | 30.99 | 24.13 | 15.95 | 4.05 | 0.05 | -2.12 | -1.98 | -2.50 | -2.54 | -4.56 | -5.29 | -5.17 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $49,198K ÷ $3,382K
= 14.55
The interest coverage ratio for Cohu Inc has shown fluctuations over the past few quarters. In the most recent quarter, as of December 31, 2023, the interest coverage ratio was 14.55, indicating that the company generated 14.55 times more operating income to cover its interest expenses. This suggests a strong ability to meet interest obligations from operating earnings.
Looking back over the previous quarters, the interest coverage ratio has generally been on an upward trend since 2019, with occasional fluctuations. The ratios for the first three quarters of 2023 (September 30, 2023, June 30, 2023, and March 31, 2023) were notably higher compared to the same periods in prior years, reflecting improved financial health and efficiency in managing interest payments.
It is worth noting that there was a significant decline in the interest coverage ratio in the first quarter of 2021 (March 31, 2021) and particularly in the fourth quarter of 2020 (December 31, 2020), where the ratio fell to very low levels and even turned negative. This may indicate financial stress or challenges in meeting interest obligations during those periods.
Overall, the improving trend in the interest coverage ratio indicates that Cohu Inc has been gradually strengthening its ability to cover interest expenses with operating income. However, the company should continue to monitor and manage its financial leverage to ensure sustainable profitability and liquidity in the long term.
Peer comparison
Dec 31, 2023