MKS Instruments Inc (MKSI)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -1,841,000 | 333,000 | 551,000 | 350,000 | 140,400 |
| Total assets | US$ in thousands | 9,118,000 | 11,495,000 | 4,540,000 | 3,903,800 | 3,416,300 |
| ROA | -20.19% | 2.90% | 12.14% | 8.97% | 4.11% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $-1,841,000K ÷ $9,118,000K
= -20.19%
MKS Instruments Inc's return on assets (ROA) has exhibited significant fluctuations over the past five years. The ROA was notably negative at -20.19% as of December 31, 2023, indicating a substantial decline in the company's ability to generate profit from its assets. This contrasts sharply with the positive ROA of 2.90% in 2022, 12.14% in 2021, 8.97% in 2020, and 4.11% in 2019.
The declining trend in ROA from 2019 to 2023 suggests potential challenges in efficiently utilizing the company's assets to generate earnings. An ROA below zero in 2023 is a concerning sign as it implies that the company's assets may not be generating sufficient profits to cover the costs associated with those assets.
Further analysis of the company's operations, asset management strategies, and overall financial performance is warranted to identify the specific factors contributing to the drastic decline in ROA observed in the most recent period.
Peer comparison
Dec 31, 2023