MKS Instruments Inc (MKSI)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	190,000	-1,841,000	333,000	551,000	350,000
Total stockholders’ equity	US$ in thousands	2,322,000	2,472,000	4,483,000	2,887,000	2,360,000
ROE		8.18%	-74.47%	7.43%	19.09%	14.83%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $190,000K ÷ $2,322,000K
= 8.18%

MKS Instruments Inc's return on equity (ROE) has shown varying trends over the period from December 31, 2020, to December 31, 2024.

At the end of 2020, MKS Instruments Inc had an ROE of 14.83%, which indicates that the company was generating a moderate return for its shareholders relative to the equity investment during that period.

By the end of 2021, the ROE had improved to 19.09%, reflecting a positive trend in the company's ability to generate profit from shareholders' equity. This increase suggests enhanced efficiency in utilizing equity to generate profits.

However, in 2022, there was a significant drop in the ROE to 7.43%, indicating a decline in profitability relative to shareholders' equity. This decrease could be attributed to various factors such as a decrease in net income or an increase in shareholders' equity.

By the end of 2023, the ROE plummeted to -74.47%, turning negative. This negative ROE implies that the company was incurring net losses relative to shareholders' equity during that period. A negative ROE may raise concerns among investors regarding the company's financial performance and management efficiency.

In 2024, the ROE improved slightly to 8.18%, but it remained relatively low compared to the earlier years. The increase may suggest some recovery in profitability, but further analysis would be required to assess the underlying factors driving this improvement.

Overall, the fluctuating ROE of MKS Instruments Inc over the years indicates the company's varying performance in generating profit from shareholders' equity. Investors and stakeholders should closely monitor these trends and consider the factors influencing the ROE to make informed decisions regarding their investment in the company.