diff --git a/pyrefly/lib/commands/coverage/collect.rs b/pyrefly/lib/commands/coverage/collect.rs
index d958b2f83b..d41cf460b2 100644
--- a/pyrefly/lib/commands/coverage/collect.rs
+++ b/pyrefly/lib/commands/coverage/collect.rs
@@ -194,14 +194,7 @@ fn merge_overloads(functions: &mut Vec<Function>) {
 
         for &idx in &indices {
             let func = &functions[idx];
-            let short_name = func.name.rsplit('.').next().unwrap_or(&func.name);
-            let has_annotation = func.return_annotation.is_some();
-            let ret = if !has_annotation && is_implicit_dunder_return(short_name) {
-                SlotRank::Skip
-            } else {
-                SlotRank::classify(has_annotation, func.is_return_type_known)
-            };
-            return_rank = return_rank.max(ret);
+            return_rank = return_rank.max(func.return_rank);
 
             for param in &func.parameters {
                 if let Some(key) = &param.merge_key {
@@ -772,23 +765,20 @@ fn parse_functions(
                 .and_then(|t| t.property_metadata().map(|m| m.role.clone()));
             let is_property_deleter = matches!(property_role, Some(PropertyRole::DeleterDecorator));
 
-            // Implicit dunder returns (e.g. __init__ → None) are always
-            // excluded from coverage, even when explicitly annotated.
-            //
-            // Property setters/deleters have a trivial `-> None` return that
-            // is not a meaningful typable, so skip it like implicit returns.
+            // Implicit dunder returns (e.g. __init__ → None) and property setter/deleter
+            // returns are trivial, so they are excluded even when explicitly annotated.
             let skip_return = is_property_deleter
                 || matches!(
                     property_role,
                     Some(PropertyRole::Setter | PropertyRole::SetterDecorator)
                 )
                 || (fun.class_key.is_some() && is_implicit_dunder_return(fun.def.name.as_str()));
-            let return_slot = if skip_return {
-                SlotCounts::default()
+            let return_rank = if skip_return {
+                SlotRank::Skip
             } else {
-                SlotRank::classify(return_annotation.is_some(), is_return_type_known).into()
+                SlotRank::classify(return_annotation.is_some(), is_return_type_known)
             };
-            let mut func_slots = return_slot;
+            let mut func_slots = SlotCounts::from(return_rank);
             let mut n_params = 0usize;
             let mut non_self_index = 0usize;
 
@@ -862,7 +852,7 @@ fn parse_functions(
             functions.push(Function {
                 name: func_name,
                 return_annotation,
-                is_return_type_known,
+                return_rank,
                 parameters,
                 is_type_known,
                 property_role,
@@ -901,7 +891,7 @@ fn parse_functions(
                     location,
                     range,
                     return_annotation: target_func.return_annotation.clone(),
-                    is_return_type_known: target_func.is_return_type_known,
+                    return_rank: target_func.return_rank,
                     parameters: target_func.parameters.clone(),
                     is_type_known: target_func.is_type_known,
                     property_role: target_func.property_role.clone(),
@@ -2302,7 +2292,7 @@ mod tests {
                 } else {
                     None
                 },
-                is_return_type_known: has_return,
+                return_rank: SlotRank::classify(has_return, has_return),
                 parameters: params
                     .into_iter()
                     .enumerate()
diff --git a/pyrefly/lib/commands/coverage/types.rs b/pyrefly/lib/commands/coverage/types.rs
index fcc88c2601..34567e2e7b 100644
--- a/pyrefly/lib/commands/coverage/types.rs
+++ b/pyrefly/lib/commands/coverage/types.rs
@@ -173,8 +173,8 @@ pub struct ReportSuppression {
 pub struct Function {
     pub name: String,
     pub return_annotation: Option<String>,
-    /// Whether the return type contains no `Any`.
-    pub is_return_type_known: bool,
+    #[serde(skip)]
+    pub return_rank: SlotRank,
     pub parameters: Vec<Parameter>,
     pub is_type_known: bool,
     /// Property role if this function is a property accessor, `None` otherwise.
diff --git a/pyrefly/lib/test/coverage/test_files/overloads.expected.json b/pyrefly/lib/test/coverage/test_files/overloads.expected.json
index 41ab0afad6..8ce7013f12 100644
--- a/pyrefly/lib/test/coverage/test_files/overloads.expected.json
+++ b/pyrefly/lib/test/coverage/test_files/overloads.expected.json
@@ -4,9 +4,11 @@
   "names": [
     "test.f",
     "test.WithOverloads.method",
+    "test.OverloadedInit.__init__",
+    "test.OverloadedInit",
     "test.WithOverloads"
   ],
-  "line_count": 33,
+  "line_count": 41,
   "symbol_reports": [
     {
       "kind": "function",
@@ -32,6 +34,30 @@
         "column": 5
       }
     },
+    {
+      "kind": "function",
+      "name": "test.OverloadedInit.__init__",
+      "n_typable": 1,
+      "n_typed": 1,
+      "n_any": 0,
+      "n_untyped": 0,
+      "location": {
+        "line": 36,
+        "column": 5
+      }
+    },
+    {
+      "kind": "class",
+      "name": "test.OverloadedInit",
+      "n_typable": 0,
+      "n_typed": 0,
+      "n_any": 0,
+      "n_untyped": 0,
+      "location": {
+        "line": 35,
+        "column": 1
+      }
+    },
     {
       "kind": "class",
       "name": "test.WithOverloads",
@@ -46,17 +72,17 @@
     }
   ],
   "type_ignores": [],
-  "n_typable": 4,
-  "n_typed": 4,
+  "n_typable": 5,
+  "n_typed": 5,
   "n_any": 0,
   "n_untyped": 0,
   "coverage": 100.0,
   "strict_coverage": 100.0,
   "n_functions": 1,
-  "n_methods": 1,
+  "n_methods": 2,
   "n_function_params": 1,
-  "n_method_params": 1,
-  "n_classes": 1,
+  "n_method_params": 2,
+  "n_classes": 2,
   "n_attrs": 0,
   "n_properties": 0,
   "n_type_ignores": 0
diff --git a/pyrefly/lib/test/coverage/test_files/overloads.py b/pyrefly/lib/test/coverage/test_files/overloads.py
index c2b704a1b9..f1257bb152 100644
--- a/pyrefly/lib/test/coverage/test_files/overloads.py
+++ b/pyrefly/lib/test/coverage/test_files/overloads.py
@@ -30,3 +30,11 @@ def method(self, x: str) -> str: ...
 
     def method(self, x):
         return x
+
+
+class OverloadedInit:
+    @overload
+    def __init__(self, x: int) -> None: ...
+    @overload
+    def __init__(self, x: str) -> None: ...
+    def __init__(self, x): ...