MKS Instruments Inc (MKSI)
Working capital 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 |
| Total current assets | US$ in thousands | 2,474,000 | 2,696,000 | 2,794,000 | 2,147,000 | 1,804,400 |
| Total current liabilities | US$ in thousands | 775,000 | 848,000 | 952,000 | 460,000 | 373,900 |
| Working capital turnover | 2.08 | 1.76 | 1.83 | 1.73 | 1.61 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,529,000K ÷ ($2,474,000K – $775,000K)
= 2.08
Working capital turnover is an important financial ratio that reflects how efficiently a company is utilizing its working capital to generate sales revenue. Looking at the data provided for MKS Instruments Inc, we can see an increasing trend in the working capital turnover ratio over the years.
In December 2020, the working capital turnover ratio was 1.61, indicating that the company generated $1.61 in net sales revenue for every dollar of working capital invested. By December 2024, this ratio had increased to 2.08, showing an improvement in efficiency in utilizing working capital.
The consistent upward trend in the working capital turnover ratio suggests that MKS Instruments Inc has been able to optimize its working capital management, translating into better efficiency in generating sales revenue. This improvement may be attributed to effective inventory management, accounts receivable collection, and overall operational efficiency within the company.
Overall, the increasing trend in the working capital turnover ratio for MKS Instruments Inc indicates a positive development in the company's working capital management and operational efficiency, which can potentially lead to improved financial performance in the future.
Peer comparison
Dec 31, 2024