MKS Instruments Inc (MKSI)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,990,000 | 2,765,000 | 2,096,900 | 1,741,600 | 1,557,180 |
| Payables | US$ in thousands | 327,000 | 426,000 | 168,000 | 110,600 | 88,400 |
| Payables turnover | 15.26 | 6.49 | 12.48 | 15.75 | 17.62 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,990,000K ÷ $327,000K
= 15.26
MKS Instruments Inc's payables turnover has shown fluctuating trends over the past five years. The ratio stood at 15.26 in 2023, indicating that the company paid its accounts payable approximately 15 times during the year. This represents a significant improvement from 2022, where the payables turnover was 6.49. The company's ability to manage its accounts payable effectively improved in 2023 compared to the previous year.
When compared to 2021, where the payables turnover was 12.48, the ratio increased in 2023, further suggesting that MKS Instruments Inc enhanced its efficiency in managing its payables. The company's payables turnover was also higher in 2023 compared to the ratios in 2020 and 2019, indicating a more efficient management of accounts payable during the most recent year.
Overall, the increasing trend in MKS Instruments Inc's payables turnover suggests that the company is effectively managing its accounts payable and paying its suppliers more frequently, which can be a positive indicator of liquidity and operational efficiency.
Peer comparison
Dec 31, 2023