MKS Instruments Inc (MKSI)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	1,642,000	1,716,000	1,680,000	1,548,000	1,547,000	1,416,000	1,374,000	1,391,000	1,379,000	1,326,600	1,240,600	1,131,900	1,049,500	964,200	907,200	871,900	830,400	823,984	850,844	914,721
Revenue (ttm)	US$ in thousands	3,259,000	3,467,000	3,500,000	3,343,000	3,377,000	3,132,600	2,994,200	2,979,700	2,924,200	2,826,800	2,674,400	2,468,000	2,307,300	2,146,751	2,019,233	1,943,569	1,871,211	1,832,101	1,859,852	1,967,634
Gross profit margin		50.38%	49.50%	48.00%	46.31%	45.81%	45.20%	45.89%	46.68%	47.16%	46.93%	46.39%	45.86%	45.49%	44.91%	44.93%	44.86%	44.38%	44.97%	45.75%	46.49%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,642,000K ÷ $3,259,000K
= 50.38%

The gross profit margin of MKS Instruments Inc has shown a generally increasing trend over the past few quarters, indicating improved efficiency in generating profits from its core operations. The margin has gradually expanded from 44.38% in March 2020 to 50.38% in December 2023. This suggests that the company has been able to effectively control its cost of goods sold and/or increase the selling price of its products.

The consistent growth in gross profit margin reflects MKS Instruments Inc's ability to maintain a healthy balance between revenue and production costs. This trend is a positive signal for investors as it indicates improving profitability and potentially sustainable performance in the long term.

Overall, the upward trajectory of the gross profit margin for MKS Instruments Inc demonstrates management's focus on operational efficiency and effectiveness in managing its production and sales processes.