MKS Instruments Inc (MKSI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 50.37% | 45.81% | 47.19% | 45.59% | 44.59% |
| Operating profit margin | -47.67% | 18.27% | 23.90% | 19.73% | 11.80% |
| Pretax margin | -59.14% | 12.82% | 22.74% | 18.38% | 9.55% |
| Net profit margin | -56.47% | 9.86% | 18.84% | 15.21% | 7.54% |
MKS Instruments Inc's profitability ratios have shown significant fluctuations over the past five years. The gross profit margin has been relatively stable, showing an increasing trend from 44.59% in 2019 to 50.37% in 2023. This indicates that the company has been able to improve its cost management and pricing strategies to generate higher profits from sales.
However, the operating profit margin has been volatile, ranging from a high of 23.90% in 2021 to a low of -47.67% in 2023. This suggests that MKS Instruments has experienced challenges in controlling its operating expenses and operating efficiently in certain years.
Similarly, the pretax margin and net profit margin have also fluctuated significantly. The pretax margin has ranged from 9.55% in 2019 to -59.14% in 2023, while the net profit margin has varied from 7.54% in 2019 to -56.47% in 2023. These ratios indicate that the company's profitability before and after taxes has been inconsistent, potentially due to factors such as changes in tax regulations, one-time charges, or operational inefficiencies.
Overall, MKS Instruments Inc's profitability ratios suggest that the company has seen improvements in its gross profit margin over the years, but its operating, pretax, and net profit margins have been more volatile, indicating potential challenges in managing costs and generating consistent profits. Further analysis of the company's financial performance and operational efficiency may be needed to better understand the underlying factors contributing to these fluctuations.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -17.04% | 5.37% | 15.40% | 11.63% | 6.43% |
| Return on assets (ROA) | -20.19% | 2.90% | 12.14% | 8.97% | 4.11% |
| Return on total capital | -21.17% | 6.35% | 18.59% | 19.15% | 10.97% |
| Return on equity (ROE) | -74.47% | 7.43% | 19.09% | 14.83% | 6.94% |
MKS Instruments Inc's profitability ratios show a fluctuating trend over the past five years.
The Operating return on assets (Operating ROA) has been inconsistent, with a sharp decline to -17.04% in 2023 from 5.37% in 2022. This indicates that the company's operating income generated per dollar of assets has decreased significantly in the most recent year.
Similarly, the Return on assets (ROA) also experienced a negative trend, declining to -20.19% in 2023 from 2.90% in 2022. This suggests that the company's overall profitability in relation to its total assets has worsened, possibly due to increased costs or lower revenues.
Return on total capital shows a similar pattern, dropping to -21.17% in 2023 from 6.35% in 2022. This metric reflects the company's ability to generate profit from all sources of capital, including debt and equity, and the negative trend could indicate inefficiencies in capital allocation.
Return on equity (ROE) experienced the most significant decrease, plummeting to -74.47% in 2023 from 7.43% in 2022. This suggests that the company's profitability in relation to shareholders' equity has deteriorated significantly, raising concerns about the company's ability to generate returns for its shareholders.
Overall, the declining profitability ratios raise red flags about MKS Instruments Inc's financial performance and may indicate underlying issues that require further investigation and potential strategic adjustments to improve profitability.