MKS Instruments Inc (MKSI)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	3,259,000	3,467,000	3,500,000	3,343,000	3,377,000	3,132,600	2,994,200	2,979,700	2,924,200	2,826,800	2,674,400	2,468,000	2,307,300	2,146,751	2,019,233	1,943,569	1,871,211	1,832,101	1,859,852	1,967,634
Total current assets	US$ in thousands	2,696,000	2,775,000	2,728,000	2,748,000	2,794,000	2,791,000	2,349,000	2,258,000	2,147,000	1,994,900	2,121,700	1,922,500	1,804,400	1,669,700	1,569,800	1,456,600	1,433,500	1,360,380	1,370,000	1,360,350
Total current liabilities	US$ in thousands	848,000	838,000	835,000	876,000	952,000	1,011,000	457,000	436,000	460,000	437,100	420,300	371,900	373,900	364,300	351,600	321,600	317,700	310,657	285,156	296,559
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,259,000K ÷ ($2,696,000K – $848,000K)
= 1.76

The working capital turnover ratio for MKS Instruments Inc has shown fluctuations over the past five years, ranging from 1.57 to 1.85. This ratio indicates how efficiently the company is utilizing its working capital to generate sales. A higher ratio typically suggests better efficiency in managing working capital.

Looking at the trend over the years, we see that the working capital turnover ratio has generally been in the range of 1.57 to 1.85, with some variability from quarter to quarter. The ratio peaked at 1.85 in Jun 2019 and again in Jun 2023, indicating periods of relatively efficient utilization of working capital during those quarters. However, the ratio dipped to 1.57 in Jun 2021, reflecting a potential decrease in efficiency in managing working capital during that period.

Overall, MKS Instruments Inc has maintained a moderate level of efficiency in utilizing its working capital to support sales over the past five years, with some fluctuations observed. Further analysis of the company's working capital management practices and business operations may provide insights into the factors driving these fluctuations in the ratio.