MKS Instruments Inc (MKSI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 48.40% | 50.37% | 45.81% | 47.19% | 45.59% |
| Operating profit margin | 14.11% | -47.67% | 18.27% | 23.90% | 19.73% |
| Pretax margin | 5.10% | -59.14% | 12.82% | 22.74% | 18.38% |
| Net profit margin | 5.38% | -56.47% | 9.86% | 18.84% | 15.21% |
MKS Instruments Inc's profitability ratios have shown fluctuations over the past five years. The gross profit margin has generally been healthy, ranging from 45.59% to 50.37%. This indicates that the company is effectively managing its production costs and generating a decent level of profit from its core operations.
The operating profit margin has varied significantly, from a strong 23.90% in 2021 to a notable decrease to -47.67% in 2023. Despite this negative outlier, MKS Instruments Inc has managed to maintain positive operating profit margins in the remaining years, with 2024 showing a recovery at 14.11%.
The pretax margin has also exhibited volatility, with a notable downturn to -59.14% in 2023. This suggests that the company faced challenges in generating profits before accounting for tax expenses during that period. The recovery to 5.10% in 2024 indicates an improvement in this aspect.
The net profit margin, reflecting the company's bottom-line profitability, has similarly experienced fluctuations. While MKS Instruments Inc achieved a strong net profit margin of 18.84% in 2021, it dipped to -56.47% in 2023, indicating significant losses. The company managed to recover slightly in 2024 with a net profit margin of 5.38%.
Overall, while MKS Instruments Inc has demonstrated the ability to maintain healthy gross profit margins, its operating, pretax, and net profit margins have been more volatile. It may be crucial for the company to focus on stabilizing and improving profitability metrics to ensure long-term financial sustainability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.80% | -17.04% | 5.37% | 15.40% | 11.63% |
| Return on assets (ROA) | 2.21% | -20.19% | 2.90% | 12.14% | 8.97% |
| Return on total capital | 6.68% | -21.17% | 6.35% | 18.59% | 19.15% |
| Return on equity (ROE) | 8.18% | -74.47% | 7.43% | 19.09% | 14.83% |
MKS Instruments Inc's profitability ratios display fluctuations over the years.
- Operating return on assets (Operating ROA) increased from 11.63% in 2020 to 15.40% in 2021, showing an improvement in the operational efficiency. However, it declined to 5.37% in 2022 before sharply dropping to -17.04% in 2023, indicating significant operational challenges. It rebounded to 5.80% in 2024, reflecting some recovery.
- Return on assets (ROA) followed a similar trend, rising from 8.97% in 2020 to 12.14% in 2021, but then declining to 2.90% in 2022, and significantly dropping to -20.19% in 2023, suggesting a sharp decline in the company's overall profitability. It slightly improved to 2.21% in 2024.
- Return on total capital declined from 19.15% in 2020 to 18.59% in 2021, before experiencing a significant decrease to 6.35% in 2022 and further dropping to -21.17% in 2023. It then improved to 6.68% in 2024, although remaining below the levels seen in the earlier years.
- Return on equity (ROE) increased from 14.83% in 2020 to 19.09% in 2021, reflecting improved return to equity holders. However, it declined to 7.43% in 2022 and plummeted to -74.47% in 2023, indicating a severe decline in shareholder value. It recovered slightly to 8.18% in 2024.
In conclusion, the profitability ratios of MKS Instruments Inc show a mixed performance, with fluctuations and challenges evident in recent years impacting the company's operational and financial performance.