MKS Instruments Inc (MKSI)
Payables 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 |
| Payables | US$ in thousands | 341,000 | 306,000 | 291,000 | 290,000 | 327,000 | 309,000 | 314,000 | 372,000 | 426,000 | 410,000 | 181,000 | 173,000 | 168,000 | 150,800 | 148,100 | 146,700 | 110,600 | 113,400 | 105,000 | 110,700 |
| Payables turnover | 9.03 | 10.27 | 10.97 | 17.66 | 15.10 | 16.16 | 15.97 | 7.94 | 6.44 | 5.88 | 11.98 | 12.33 | 12.48 | 13.47 | 13.13 | 12.48 | 15.78 | 14.74 | 15.26 | 14.17 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,079,000K ÷ $341,000K
= 9.03
The payables turnover ratio measures the efficiency of a company in paying its suppliers. A higher turnover ratio indicates that the company is paying its suppliers more frequently.
Analyzing the payables turnover of MKS Instruments Inc from March 31, 2020, to December 31, 2024, shows a varied trend. The ratio ranged from a peak of 17.66 on March 31, 2024, to a low of 5.88 on September 30, 2022.
In general, the trend shows some fluctuation throughout the period, with some quarters showing higher turnover ratios while others exhibit lower ratios. This fluctuation could be due to various factors, such as changes in purchasing patterns, payment terms negotiation with suppliers, or disruptions in the supply chain.
It is important for MKS Instruments Inc to closely monitor its payables turnover ratio to ensure that it maintains a healthy balance between efficiently managing its payables and maintaining good relationships with its suppliers. Further analysis and comparison with industry peers may provide additional insights into the company's payables management efficiency.
Peer comparison
Dec 31, 2024