MKS Instruments Inc (MKSI)

Payables 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
Cost of revenue (ttm)	US$ in thousands	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	1,557,178	1,496,847	1,473,506	1,489,590
Payables	US$ in thousands	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	88,400	88,078	88,046	95,317
Payables turnover		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	17.62	16.99	16.74	15.63

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,938,000K ÷ $327,000K
= 15.10

The payables turnover ratio for MKS Instruments Inc has shown fluctuations over the past few quarters, ranging from as low as 5.88 to as high as 17.62. This ratio indicates how many times the company pays off its accounts payables within a specific period. A higher payables turnover ratio suggests that the company is efficiently managing its accounts payables by settling them more frequently.

In the most recent quarter, the payables turnover ratio was 15.10, indicating a significant increase compared to the previous quarter's 7.94. This suggests that MKS Instruments Inc has improved its accounts payables management efficiency, possibly by negotiating better payment terms with its suppliers or streamlining its payment processes.

Overall, the increasing trend in the payables turnover ratio over the past quarters reflects positively on the company's liquidity management and ability to maintain good relationships with its suppliers. However, it is important to monitor this ratio in conjunction with other financial metrics to get a comprehensive understanding of MKS Instruments Inc's financial health and operational efficiency.