MKS Instruments Inc (MKSI)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.45 | 3.34 | 3.40 | 5.27 | 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 |
| Receivables turnover | 5.47 | 5.30 | 5.32 | 5.77 | 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 |
| 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 |
| Working capital turnover | 1.98 | 1.71 | 1.67 | 1.71 | 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 |
The activity ratios of MKS Instruments Inc provide insights into the efficiency with which the company manages its assets and liabilities.
1. Inventory Turnover: MKS Instruments Inc's inventory turnover ratio has fluctuated over the years, ranging from 2.51 to 5.27. A higher turnover indicates that the company is selling its inventory more quickly, which can be a positive sign of efficient inventory management.
2. Receivables Turnover: The receivables turnover ratio shows how efficiently the company is collecting on its credit sales. MKS Instruments Inc's ratio has varied between 4.29 and 6.61, reflecting the effectiveness of its credit and collection policies.
3. Payables Turnover: This ratio reflects how quickly the company pays its suppliers. MKS Instruments Inc's payables turnover has ranged from 5.88 to 17.66, indicating changes in the company's payment practices over time.
4. Working Capital Turnover: The working capital turnover ratio measures how effectively the company utilizes its working capital to generate sales. MKS Instruments Inc's turnover has fluctuated between 1.57 and 1.98, showing variations in its working capital management efficiency.
Overall, analyzing these activity ratios can help assess MKS Instruments Inc's operational efficiency and effectiveness in managing its assets and liabilities to generate sales and revenue.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 105.86 | 109.16 | 107.26 | 69.19 | 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 |
| Days of sales outstanding (DSO) | days | 66.77 | 68.88 | 68.59 | 63.29 | 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 |
| Number of days of payables | days | 40.42 | 35.54 | 33.28 | 20.67 | 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 |
MKS Instruments Inc's activity ratios reflect how efficiently the company manages its inventory, collects receivables, and pays its suppliers.
1. Days of Inventory on Hand (DOH):
- The DOH shows the number of days it takes for the company to sell its inventory. From March 31, 2020, to December 31, 2024, the DOH ranged from a low of 69.19 days to a high of 145.50 days.
- The trend shows fluctuation in inventory management efficiency over the periods, with a notable increase in DOH from September 30, 2022, to March 31, 2023, before a decline in the following quarters.
2. Days of Sales Outstanding (DSO):
- DSO represents the average number of days it takes for the company to collect payment after making a sale. The range of DSO for MKS Instruments Inc between March 31, 2020, and December 31, 2024, was 55.25 days to 85.06 days.
- The company's collection efficiency improved from March 31, 2020, to December 31, 2021, as the DSO decreased. However, there was a rise in DSO in the third and fourth quarters of 2022, indicating a potential delay in receivables collections.
3. Number of Days of Payables:
- This ratio reflects the average number of days the company takes to pay its suppliers. MKS Instruments Inc's payables days ranged from 20.67 days to 62.08 days during the period.
- The trend in payables days shows fluctuations, with a significant increase from June 30, 2022, to March 31, 2023, before decreasing in subsequent quarters.
Overall, the analysis of MKS Instruments Inc's activity ratios suggests varying levels of efficiency in managing inventory, receivables, and payables over the periods examined. Monitor these ratios to assess the company's operational performance and potential cash flow challenges.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 4.36 | 4.19 | 4.19 | 4.34 | 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 |
| Total asset turnover | 0.39 | 0.36 | 0.36 | 0.37 | 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 |
The fixed asset turnover ratio for MKS Instruments Inc has been relatively stable between March 2020 and June 2022, ranging from 7.94 to 9.00 times. This indicates that the company efficiently uses its fixed assets to generate sales revenue. However, starting in September 2022, there was a significant decrease in the fixed asset turnover ratio, reaching as low as 4.16 by December 2023. This decline could suggest potential issues in how efficiently the company is utilizing its fixed assets to generate sales.
In terms of total asset turnover, MKS Instruments Inc has experienced fluctuations in the ratio over the same period. The total asset turnover ratio ranged from 0.56 to 0.65 between March 2020 and December 2021, indicating moderate efficiency in generating sales relative to the total assets. However, from September 2022 onwards, there was a notable decline in the total asset turnover ratio, falling to as low as 0.28 by September 2022 and gradually improving to 0.39 by December 2024.
These trends in both fixed asset turnover and total asset turnover ratios suggest that MKS Instruments Inc may have experienced challenges in optimizing the utilization of its assets to generate sales revenue efficiently in recent years. Further analysis would be needed to understand the specific factors contributing to these fluctuations and the potential implications for the company's operational performance and financial health.