MKS Instruments Inc (MKSI)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	3,362,000	3,227,000	3,177,000	3,322,000	3,259,000	3,467,000	3,500,000	3,343,000	3,377,000	3,132,600	2,994,200	2,979,700	2,924,200	2,826,800	2,674,400	2,468,000	2,307,300	2,146,751	2,019,233	1,943,569
Property, plant and equipment	US$ in thousands	771,000	770,000	759,000	766,000	784,000	761,000	777,000	794,000	800,000	655,000	377,000	331,000	326,000	316,800	303,900	297,000	284,300	267,900	248,400	238,200
Fixed asset turnover		4.36	4.19	4.19	4.34	4.16	4.56	4.50	4.21	4.22	4.78	7.94	9.00	8.97	8.92	8.80	8.31	8.12	8.01	8.13	8.16

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,362,000K ÷ $771,000K
= 4.36

The fixed asset turnover ratio of MKS Instruments Inc has shown a consistent upward trend from March 31, 2020, to September 30, 2021, reaching its peak at 8.97 on December 31, 2021. This indicates that the company was able to generate $8.97 in revenue for every dollar invested in fixed assets during that period. However, starting from June 30, 2022, the fixed asset turnover ratio began to decline, dropping to 4.19 by June 30, 2024.

The significant decrease in the fixed asset turnover ratio over the latter part of the observed period suggests that MKS Instruments Inc may be experiencing challenges in efficiently utilizing its fixed assets to generate revenue. This declining trend warrants further investigation into the company's operational efficiency and asset management practices to identify potential areas for improvement and optimization.