MKS Instruments Inc (MKSI)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,529,000 | 3,260,000 | 3,377,000 | 2,924,200 | 2,300,900 |
| Receivables | US$ in thousands | 615,000 | 603,000 | 720,000 | 442,600 | 392,700 |
| Receivables turnover | 5.74 | 5.41 | 4.69 | 6.61 | 5.86 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,529,000K ÷ $615,000K
= 5.74
The receivables turnover ratio measures how efficiently a company is able to collect its outstanding receivables during a specific period. For MKS Instruments Inc, the receivables turnover ratio has shown some fluctuations over the past five years.
In December 31, 2020, the receivables turnover ratio was 5.86, indicating that the company collected its outstanding receivables nearly 6 times during the year. This suggests a relatively good efficiency in collecting receivables.
The ratio improved in the following year, with a turnover of 6.61 in December 31, 2021, indicating further enhancement in the collection process.
However, there was a decline in efficiency in December 31, 2022, with a turnover ratio of 4.69. This might suggest that the company faced challenges in collecting receivables promptly during that period.
The ratio then recovered slightly in December 31, 2023, reaching 5.41, but remained below the levels seen in 2020 and 2021.
By December 31, 2024, the receivables turnover ratio had further improved to 5.74, indicating a better performance in collecting outstanding receivables compared to the previous year.
Overall, while there have been fluctuations in MKS Instruments Inc's receivables turnover ratio over the past five years, the company has generally demonstrated an ability to efficiently manage and collect its receivables. Monitoring this ratio over time can provide insights into the company's effectiveness in managing its accounts receivable.
Peer comparison
Dec 31, 2024