MKS Instruments Inc (MKSI)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	875,000	859,000	757,000	880,000	909,000	884,000	1,065,000	1,011,000	966,000	633,300	755,200	699,800	608,300	493,300	428,900	442,000	414,600	386,281	366,935	418,016
Short-term investments	US$ in thousands	0	1,000	1,000	1,000	1,000	1,000	2,000	42,000	76,000	246,300	283,800	209,700	227,700	222,400	178,100	61,400	109,400	88,847	92,985	44,326
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
Cash ratio		1.03	1.03	0.91	1.01	0.96	0.88	2.33	2.42	2.27	2.01	2.47	2.45	2.24	1.96	1.73	1.57	1.65	1.53	1.61	1.56

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 for MKS Instruments Inc has fluctuated over the past five years, ranging from a low of 0.88 to a high of 2.47. The ratio measures the company's ability to pay off its current liabilities using only its cash and cash equivalents.

In recent quarters, the cash ratio has shown some variability, possibly indicating variations in the company's liquidity position. A higher cash ratio suggests a stronger ability to cover short-term obligations solely with cash on hand, while a lower ratio may indicate a reliance on other liquid assets or potential challenges in meeting immediate payment needs.

It is important for investors and analysts to monitor changes in the cash ratio over time to assess the company's short-term liquidity position and financial health. Additionally, comparing the cash ratio to industry benchmarks and historical trends can provide further insights into MKS Instruments Inc's financial performance and risk profile.