MKS Instruments Inc (MKSI)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	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	3.37	3.23	3.07	3.13
Receivables turnover	5.40	5.61	5.55	5.84	4.69	4.29	6.22	6.21	6.61	6.38	6.20	5.87	5.88	5.90	5.30	5.10	5.49	5.59	5.93	5.86
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
Working capital turnover	1.76	1.79	1.85	1.79	1.83	1.76	1.58	1.64	1.73	1.81	1.57	1.59	1.61	1.64	1.66	1.71	1.68	1.75	1.71	1.85

The inventory turnover ratio for MKS Instruments Inc has been relatively stable over the past two years, ranging from 2.79 to 4.98. This indicates that the company is efficient in managing its inventory and converting it into sales. The upward trend in inventory turnover may suggest better inventory management practices.

The receivables turnover ratio has shown a consistent increase from 4.29 to 6.61 over the same period, indicating that the company is collecting its accounts receivable more quickly. This improvement reflects efficient credit policies and effective collection efforts.

The payables turnover ratio has been fluctuating but generally increasing from 5.88 to 16.16. This indicates that the company is taking longer to pay its suppliers, which may be a strategic move to optimize its cash flow and working capital.

The working capital turnover ratio has also varied but remained relatively stable around 1.57 to 1.85. This suggests that the company is effectively utilizing its working capital to generate sales revenue. A higher working capital turnover ratio typically indicates efficient capital management.

Overall, the activity ratios reflect positive trends in inventory management, accounts receivable collection, payables management, and working capital utilization for MKS Instruments Inc.

Average number of days

		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
Days of inventory on hand (DOH)	days	73.25	73.78	75.40	130.82	130.01	145.50	115.95	108.84	100.44	98.92	98.95	102.69	104.87	107.94	111.68	110.37	108.32	112.96	118.78	116.55
Days of sales outstanding (DSO)	days	67.53	65.06	65.80	62.45	77.82	85.06	58.64	58.80	55.25	57.25	58.92	62.23	62.12	61.87	68.89	71.55	66.53	65.34	61.53	62.33
Number of days of payables	days	24.17	22.59	22.85	46.00	56.69	62.08	30.46	29.61	29.24	27.10	27.81	29.24	23.13	24.77	23.92	25.77	20.72	21.48	21.81	23.36

Days of Inventory on Hand (DOH) measures how efficiently MKS Instruments manages its inventory. In general, a lower DOH indicates better inventory management. MKS Instruments' DOH fluctuated over the periods, but a trend of improvement can be observed since the beginning of 2023.

Days of Sales Outstanding (DSO) shows how quickly MKS Instruments collects its accounts receivable. A lower DSO is desirable as it indicates faster collection of cash. MKS Instruments has shown a decreasing trend in DSO over the periods, indicating improved efficiency in collecting receivables.

Number of Days of Payables represents how long it takes MKS Instruments to pay its suppliers. A longer payment period is beneficial as it allows the company to hold onto cash longer. MKS Instruments' number of days of payables fluctuated, but generally remained within a reasonable range over the periods.

In conclusion, MKS Instruments has shown improvements in managing its inventory and collecting receivables efficiently, while maintaining a reasonable payment period to suppliers.

Long-term

	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
Fixed asset turnover	4.16	4.56	4.50	4.21	4.22	4.78	7.94	9.00	8.97	8.92	8.80	8.31	8.12	8.01	8.13	8.16	7.74	7.76	8.06	7.83
Total asset turnover	0.36	0.38	0.38	0.29	0.29	0.28	0.63	0.64	0.64	0.65	0.64	0.61	0.59	0.57	0.56	0.56	0.55	0.55	0.55	0.58

The fixed asset turnover ratio for MKS Instruments Inc has shown variability over the past few periods, ranging from a low of 4.16 to a high of 9.00. This ratio measures how efficiently the company is utilizing its fixed assets to generate sales revenue. A higher fixed asset turnover ratio indicates better efficiency in utilizing fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has also exhibited fluctuation over the same periods, with values ranging from 0.29 to 0.65. This ratio evaluates the company's ability to generate sales in relation to its total assets. An increasing total asset turnover ratio suggests that the company is effectively using its total assets to generate sales.

Overall, the company's fixed asset turnover ratios indicate a relatively stable efficiency in utilizing fixed assets, with some fluctuations. The total asset turnover ratios have also shown varying trends but generally indicate an increasing efficiency in generating sales in relation to total assets over the periods analyzed.