MKS Instruments Inc (MKSI)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 111.82 | 72.49 | 128.97 | 100.44 | 105.08 |
| Days of sales outstanding (DSO) | days | 63.61 | 67.51 | 77.82 | 55.25 | 62.30 |
| Number of days of payables | days | 42.70 | 23.92 | 56.24 | 29.24 | 23.18 |
| Cash conversion cycle | days | 132.73 | 116.08 | 150.56 | 126.44 | 144.20 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 111.82 + 63.61 – 42.70
= 132.73
The cash conversion cycle of MKS Instruments Inc has shown fluctuations over the five-year period from December 31, 2020, to December 31, 2024. The cycle reached its peak at 150.56 days on December 31, 2022, indicating a longer time taken to convert investments in inventory and receivables into cash. On the other hand, the cycle decreased significantly to 116.08 days on December 31, 2023, suggesting a more efficient conversion process during that period. Overall, the company has experienced variations in its cash conversion cycle, which is an important metric in assessing its liquidity and operational efficiency.
Peer comparison
Dec 31, 2024