MKS Instruments Inc (MKSI)

Current 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
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
Current ratio		3.18	3.31	3.27	3.14	2.93	2.76	5.14	5.18	4.67	4.56	5.05	5.17	4.83	4.58	4.46	4.53	4.51	4.38	4.80	4.59

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,696,000K ÷ $848,000K
= 3.18

The current ratio of MKS Instruments Inc has shown some fluctuation over the past five quarters with values ranging between 2.76 and 3.31. The ratio indicates the company's ability to meet its short-term obligations using its current assets. Generally, a current ratio above 1 indicates that a company can cover its current liabilities with its current assets.

MKS Instruments Inc's current ratio has been consistently above 3 for the last five quarters, indicating a healthy liquidity position. A current ratio above 3 suggests that the company has more than enough current assets to cover its current liabilities, providing a comfortable cushion for short-term obligations.

However, it is important to note the significant spike in the current ratio in the second and third quarters of 2022, where it reached unusually high levels of 5.14 and 5.18, respectively. Such high current ratios may indicate that the company has a large amount of liquid assets relative to its short-term liabilities during those periods.

Overall, MKS Instruments Inc's current ratio trend reflects a strong liquidity position, which is essential for ensuring the company's ability to meet its short-term financial obligations effectively.