Cohu Inc (COHU)

Solvency ratios

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
Debt-to-assets ratio 0.03 0.03 0.03 0.03 0.06 0.06 0.06 0.08 0.08 0.09 0.08 0.17 0.29 0.32 0.33 0.32 0.32 0.32 0.31 0.31
Debt-to-capital ratio 0.03 0.04 0.04 0.04 0.07 0.08 0.08 0.10 0.10 0.11 0.12 0.22 0.38 0.41 0.43 0.43 0.42 0.41 0.40 0.39
Debt-to-equity ratio 0.04 0.04 0.04 0.04 0.08 0.08 0.08 0.11 0.12 0.13 0.13 0.28 0.61 0.70 0.75 0.75 0.72 0.70 0.66 0.65
Financial leverage ratio 1.21 1.23 1.25 1.27 1.32 1.36 1.39 1.40 1.43 1.46 1.61 1.68 2.13 2.20 2.29 2.31 2.23 2.18 2.14 2.09

Cohu Inc's solvency ratios have shown varying trends over the past few quarters. The debt-to-assets ratio has remained relatively stable around 0.03 to 0.08 from December 2022 to December 2023, indicating a low level of financial risk as the company's debt burden is relatively low compared to its total assets.

Similarly, the debt-to-capital and debt-to-equity ratios have also exhibited consistency, ranging from 0.03 to 0.13 and 0.04 to 0.13, respectively, during the same period. These ratios suggest that Cohu has maintained a healthy balance between debt and equity in its capital structure, with a moderate level of leverage.

However, the financial leverage ratio has shown a more pronounced increase over time, climbing from 1.32 in December 2022 to 2.09 in December 2019. This indicates that the company has become more leveraged, potentially raising concerns about its ability to meet its financial obligations in the long term.

Overall, while Cohu Inc's low debt ratios may imply a lower risk of insolvency, the increasing financial leverage ratio warrants further scrutiny to assess the company's overall solvency and financial health.

Coverage ratios

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
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

The interest coverage ratio for Cohu Inc has shown significant fluctuations over the past several quarters. From December 2019 to June 2020, the company experienced declining interest coverage ratios, with negative values indicating that the company's earnings were insufficient to cover its interest expenses. This could be a cause for concern as it reflects potential financial distress and an increased risk of default on debt payments.

However, the trend reversed from September 2020 onwards, with the interest coverage ratio steadily increasing. This improvement indicates that the company's profitability and ability to service its debt obligations have strengthened. The ratio peaked at 40.22 in March 2022, reflecting a healthy cushion between its earnings and interest expenses.

Investors and creditors generally view a higher interest coverage ratio positively as it suggests that the company is more capable of meeting its interest obligations. Cohu Inc's recent trend of increasing interest coverage is a positive indicator of its financial health and ability to manage its debt effectively. It is essential for the company to continue monitoring and maintaining this ratio to ensure sustainable financial performance and stability in the future.