MKS Instruments Inc (MKSI)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,260,000	3,377,000	2,924,200	2,300,900	1,862,410
Total current assets	US$ in thousands	2,696,000	2,794,000	2,147,000	1,804,400	1,433,500
Total current liabilities	US$ in thousands	848,000	952,000	460,000	373,900	317,700
Working capital turnover		1.76	1.83	1.73	1.61	1.67

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,260,000K ÷ ($2,696,000K – $848,000K)
= 1.76

The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher ratio indicates better efficiency in utilizing working capital.

For MKS Instruments Inc, the trend in the working capital turnover ratio has been somewhat fluctuating over the past five years. The company's working capital turnover ratios have ranged from 1.61 to 1.83 during this period.

In 2023, the working capital turnover ratio stood at 1.76, slightly lower than the ratio in 2022 (1.83). This implies that in 2023, MKS Instruments Inc generated $1.76 in sales revenue for every dollar of working capital invested. While the ratio declined from the previous year, it still indicates that the company efficiently utilizes its working capital to generate sales.

Overall, the working capital turnover ratio for MKS Instruments Inc has displayed a general stability over the past five years, showing that the company effectively manages its working capital to support its sales operations.