MKS Instruments Inc (MKSI)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	875,000	909,000	966,000	608,300	414,600
Short-term investments	US$ in thousands	0	1,000	76,000	227,700	109,400
Total current liabilities	US$ in thousands	848,000	952,000	460,000	373,900	317,700
Cash ratio		1.03	0.96	2.27	2.24	1.65

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($875,000K + $0K) ÷ $848,000K
= 1.03

The cash ratio of MKS Instruments Inc has shown some fluctuations over the past five years. In 2023, the cash ratio stood at 1.03, indicating that the company had $1.03 in cash and cash equivalents for every $1 of current liabilities. This ratio decreased from the previous year but remained at a relatively healthy level.

In 2022, the cash ratio was 0.96, which was slightly lower than in 2023 but still above 1. This suggests that the company had sufficient cash reserves to cover its short-term obligations, although the ratio decreased.

In 2021, the cash ratio spiked to 2.27, indicating a significant increase in the company's liquidity position compared to the previous years. This could be attributed to changes in the company's cash and short-term investments relative to its current liabilities.

Similarly, in 2020 and 2019, the cash ratios were 2.24 and 1.65, respectively, reflecting strong liquidity positions in both years. These ratios show that the company had more than enough cash to cover its short-term liabilities during these periods.

Overall, while the cash ratio of MKS Instruments Inc has fluctuated over the years, it generally indicates that the company has maintained a strong liquidity position, with sufficient cash reserves to meet its short-term obligations.