MKS Instruments Inc (MKSI)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 2,472,000 | 4,483,000 | 2,887,000 | 2,360,000 | 2,022,000 |
| ROE | -74.47% | 7.43% | 19.09% | 14.83% | 6.94% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-1,841,000K ÷ $2,472,000K
= -74.47%
The return on equity (ROE) of MKS Instruments Inc has displayed substantial variability over the past five years. In 2023, the company reported a negative ROE of -74.47%, indicating that the company incurred a net loss for the year relative to its equity. This drastic decline in ROE compared to previous years implies a significant deterioration in profitability and efficiency in 2023.
In contrast, MKS Instruments Inc had a relatively low ROE of 7.43% in 2022, which improved to 19.09% in 2021 and 14.83% in 2020. These figures suggest that the company was able to generate moderate returns for its shareholders during these years, with a particularly strong performance in 2021.
Looking back to 2019, MKS Instruments Inc had an ROE of 6.94%, indicating a lower level of profitability and efficiency compared to the subsequent years. Overall, the fluctuating trend in ROE over the period reflects variations in the company's profitability and efficiency levels and underscores the importance of monitoring financial performance metrics to assess long-term sustainability and shareholder value creation.
Peer comparison
Dec 31, 2023