MKS Instruments Inc (MKSI)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 420,000 507,000 909,000 966,000 608,300
Short-term investments US$ in thousands 0 1,000 76,000 227,700
Receivables US$ in thousands 615,000 603,000 720,000 442,600 392,700
Total current liabilities US$ in thousands 775,000 848,000 952,000 460,000 373,900
Quick ratio 1.34 1.31 1.71 3.23 3.29

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($420,000K + $—K + $615,000K) ÷ $775,000K
= 1.34

The quick ratio for MKS Instruments Inc has been consistently strong over the past years, indicating a healthy liquidity position. As of December 31, 2020, the quick ratio was 3.29, slightly decreasing to 3.23 by December 31, 2021. However, there was a noticeable decline in the ratio to 1.71 by December 31, 2022, which suggests a potential decrease in the company's ability to meet its short-term obligations with its most liquid assets.

The trend continued with a further decrease in the quick ratio to 1.31 by December 31, 2023, indicating potential liquidity challenges. However, by December 31, 2024, the quick ratio slightly improved to 1.34, although it still remains below the ideal threshold of 2.

Overall, while the quick ratio for MKS Instruments Inc has fluctuated over the years, the company has generally maintained a good level of liquidity to meet its short-term obligations. It is important for investors and creditors to monitor this ratio to assess the company's ability to cover its immediate liabilities with its liquid assets.