MKS Instruments Inc (MKSI)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 1,871,211 | 1,832,101 | 1,859,852 | 1,967,634 |
| Property, plant and equipment | US$ in thousands | 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 | 241,900 | 236,124 | 230,649 | 251,424 |
| Fixed asset turnover | 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 | 7.74 | 7.76 | 8.06 | 7.83 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,259,000K ÷ $784,000K
= 4.16
The fixed asset turnover ratio for MKS Instruments Inc has shown variability over the last few years. The ratio measures how efficiently the company is utilizing its fixed assets to generate sales.
From March 2019 to June 2022, the company experienced a consistent increase in fixed asset turnover, reaching a peak of 9.00 in March 2022. This indicates that MKS was generating $9 in sales for every $1 invested in fixed assets during that time period.
However, starting from September 2022, the fixed asset turnover ratio began to decline, reaching 4.22 by December 2022. This decline continued into 2023 and reached a low of 4.16 by December 2023. The decreasing trend suggests that while the company is still generating sales from its fixed assets, the efficiency of this process has decreased compared to previous periods.
Overall, MKS Instruments Inc should closely monitor the trend in its fixed asset turnover ratio to ensure optimal utilization of its fixed assets in generating sales and consider potential strategies to improve efficiency in asset utilization.
Peer comparison
Dec 31, 2023