Cohu, Inc. (COHU) Balance Sheet

The jump in debt occurred in late 2025 and has since remained broadly flat around $327M, suggesting a financed balance sheet event rather than ongoing operating borrowing. Equity has been stable, so the increase in leverage appears to be the primary driver of the change in the balance sheet profile. Investors should monitor whether the debt stays at this level or is repaid as operating cash flow normalizes.

Holding both cash and debt at elevated levels simultaneously implies the company is carrying gross debt that is not being fully offset by net cash, which increases interest exposure relative to the prior period. The D/E ratio of 0.42 remains moderate, but the step change warrants scrutiny of the debt terms. The data does not disclose the specific instrument or maturity profile, so refinancing risk cannot be assessed directly from these figures.

The fall in the current ratio over the last two quarters appears driven by growth in current liabilities and the debt build rather than a deterioration in current assets, which rose alongside cash. A ratio above 5 gives considerable room against working capital swings. The trend is directionally weaker, however, and investors should monitor whether it continues to compress as the company scales receivables and inventory.

Net PP&E of $102.2M is modest relative to the goodwill balance, which suggests an asset-light manufacturing footprint and a balance sheet heavily weighted toward intangible value. This raises impairment sensitivity: a sustained shortfall in cyclical recovery could pressure the carrying value of goodwill. The current profitability profile makes this a relevant monitoring point rather than a near-term reported issue.