MKS Instruments Inc (MKSI)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	-1,841,000	-1,718,000	-1,751,000	148,000	333,000	429,000	555,000	571,000	550,000	515,600	475,300	403,000	350,100	277,300	233,000	197,000	140,400	169,236	215,113	300,275
Total stockholders’ equity	US$ in thousands	2,472,000	2,476,000	2,495,000	4,451,000	4,483,000	4,149,000	3,129,000	3,027,000	2,887,000	2,728,000	2,614,000	2,469,000	2,360,000	2,226,800	2,126,600	2,052,500	2,022,000	1,973,500	1,945,500	1,920,900
ROE		-74.47%	-69.39%	-70.18%	3.33%	7.43%	10.34%	17.74%	18.86%	19.05%	18.90%	18.18%	16.32%	14.83%	12.45%	10.96%	9.60%	6.94%	8.58%	11.06%	15.63%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-1,841,000K ÷ $2,472,000K
= -74.47%

MKS Instruments Inc's return on equity (ROE) has exhibited significant fluctuations over the past few quarters. The ROE was particularly low in the most recent quarter, decreasing to -74.47%, indicating that the company experienced challenges generating profits relative to its shareholder equity during that period.

Looking back over the last few years, there seems to be a trend of decreasing ROE since the peak in the first quarter of 2021. From March 2021 to March 2023, the ROE declined steadily before turning negative in the last quarter. This downward trend suggests that the company may be facing challenges in efficiently utilizing its equity to generate returns for shareholders.

It is noteworthy that there was a brief positive spike in ROE during the first quarter of 2023, indicating a temporary improvement in profitability efficiency. However, this positive performance was not sustained in the subsequent quarters.

Overall, the negative and decreasing trend in MKS Instruments Inc's ROE raises concerns about the company's ability to generate sustainable returns for its shareholders. Further analysis of the company's financial performance and operational efficiency is warranted to understand the underlying factors contributing to these ROE fluctuations.