MKS Instruments Inc (MKSI)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,079,000 | 3,143,000 | 3,192,000 | 5,122,000 | 4,938,000 | 4,992,000 | 5,015,000 | 2,952,000 | 2,743,000 | 2,410,700 | 2,169,000 | 2,132,900 | 2,096,900 | 2,030,800 | 1,943,900 | 1,831,200 | 1,745,200 | 1,671,139 | 1,602,123 | 1,568,168 |
| Inventory | US$ in thousands | 893,000 | 940,000 | 938,000 | 971,000 | 991,000 | 1,009,000 | 1,036,000 | 1,058,000 | 977,000 | 961,000 | 689,000 | 636,000 | 577,000 | 550,400 | 527,000 | 515,200 | 501,400 | 494,200 | 490,200 | 474,200 |
| Inventory turnover | 3.45 | 3.34 | 3.40 | 5.27 | 4.98 | 4.95 | 4.84 | 2.79 | 2.81 | 2.51 | 3.15 | 3.35 | 3.63 | 3.69 | 3.69 | 3.55 | 3.48 | 3.38 | 3.27 | 3.31 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,079,000K ÷ $893,000K
= 3.45
Inventory turnover is a financial ratio that measures how many times a company's inventory is sold and replaced over a specific period. For MKS Instruments Inc, the inventory turnover fluctuated over the period from March 31, 2020, to December 31, 2024.
In March 2020, the inventory turnover was 3.31, indicating that the company's inventory was turned over approximately 3.31 times during that period. The turnover remained relatively stable around 3.2 to 3.5 until March 2021. From March 2021 to June 2023, there was a gradual increase in inventory turnover, peaking at 5.27 in March 2024.
The sudden increase followed by a decline in inventory turnover from June 2023 to December 2024 suggests potential changes in the company's inventory management practices or demand patterns. A high inventory turnover ratio indicates efficient inventory management and possibly higher demand for the company's products. Conversely, a low turnover may indicate excess inventory, obsolete stock, or declining sales.
Overall, analyzing MKS Instruments Inc's inventory turnover trend can provide insights into its operational efficiency, inventory control, and sales management strategies. Monitoring and understanding changes in inventory turnover can help assess the company's financial health and performance in managing its inventory effectively.
Peer comparison
Dec 31, 2024
Dec 31, 2024