MKS Instruments Inc (MKSI)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,915,000 | 4,990,000 | 2,765,000 | 2,096,900 | 1,741,600 |
| Payables | US$ in thousands | 341,000 | 327,000 | 426,000 | 168,000 | 110,600 |
| Payables turnover | 8.55 | 15.26 | 6.49 | 12.48 | 15.75 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,915,000K ÷ $341,000K
= 8.55
The payables turnover ratio for MKS Instruments Inc has fluctuated over the past five years. In 2020, the company had a payables turnover ratio of 15.75, indicating that it converted its accounts payable nearly 16 times during the year. However, this ratio decreased to 12.48 in 2021 and further dropped to 6.49 in 2022, suggesting a slowdown in the rate at which the company was paying off its suppliers.
In 2023, there was a significant improvement as the payables turnover ratio rose to 15.26, indicating a return to a more efficient management of payables. Nonetheless, in 2024, the ratio decreased again to 8.55, possibly pointing to a lengthening of the time taken to pay off suppliers compared to the previous year.
Overall, while there have been fluctuations in MKS Instruments Inc's payables turnover ratio, the company generally appears to efficiently manage its accounts payable, with higher ratios indicating a more rapid turnover of payables. It is essential for the company to monitor and manage this ratio effectively to maintain good relationships with suppliers and optimize its working capital.
Peer comparison
Dec 31, 2024