Cohu, Inc. (COHU) Cash Flow Statement

The conversion ratio is distorted by near-zero or negative net income denominators, so the OCF/NI figures of -65.67 and 3.42 are not meaningful on their own. The more informative pattern is that positive operating cash flow has persisted through the recent recovery even while GAAP earnings remained weak. Investors should monitor whether this reflects genuine cash earnings or working capital releases that may reverse.

These reversals suggest that collections timing and inventory movements, rather than underlying operating performance, drive much of the reported cash result. The alternating pattern of large inflows and outflows implies that headline operating cash flow may overstate or understate sustainable generation depending on the quarter. Analysts should monitor receivables and inventory balances to judge whether the 2026Q3 build represents normal recovery-driven investment or a collection slowdown.

Capex consistently near 1.5% of revenue suggests maintenance-level spending that is modest relative to D&A of $7.2M to $13.6M per quarter, a gap that may indicate depreciation is largely reflecting prior acquisition-related intangibles rather than ongoing asset replacement needs. The 2025Q1 spike warrants understanding as a discrete project rather than a recurring pattern. Investors should monitor whether capex remains below D&A over time, which could signal underinvestment.

The absence of dividends and modest repurchases indicates that cash has been prioritized for balance sheet repair and acquisition integration rather than shareholder returns. This is consistent with the low debt level implied by prior balance sheet findings. Investors should monitor whether management redirects surplus cash toward buybacks once the recovery in operating cash flow proves durable.