MKS Instruments Inc (MKSI)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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
Receivables	US$ in thousands	603,000	720,000	442,600	392,700	341,064
Total current liabilities	US$ in thousands	848,000	952,000	460,000	373,900	317,700
Quick ratio		1.74	1.71	3.23	3.29	2.72

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($875,000K + $0K + $603,000K) ÷ $848,000K
= 1.74

The quick ratio, also known as the acid-test ratio, measures the company's ability to meet its short-term obligations using its most liquid assets. MKS Instruments Inc's quick ratio has been relatively stable over the past five years, ranging from 1.71 to 3.29.

The quick ratio of MKS Instruments Inc as of Dec 31, 2023, stands at 1.74, indicating that the company possesses $1.74 in easily convertible assets for every $1 of its current liabilities. This suggests that MKS Instruments Inc has a comfortable cushion of liquid assets to cover its short-term obligations.

Comparing the current quick ratio with the ratios from previous years, we see that it is slightly higher than the ratio in the previous year (1.71 in 2022). While a quick ratio above 1 indicates a company's short-term liquidity, it is important to note that a very high ratio could signify an underutilization of assets.

Overall, MKS Instruments Inc's quick ratio has been consistently above 1 over the past five years, indicating a strong ability to meet its short-term liabilities using its liquid assets. This suggests that the company has a healthy liquidity position and is well-positioned to handle any short-term financial challenges.