MKS Instruments Inc (MKSI)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 191,000 | 31,000 | 8,000 | -1,784,000 | -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 |
| Total stockholders’ equity | US$ in thousands | 2,322,000 | 2,398,000 | 2,233,000 | 2,424,000 | 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 |
| ROE | 8.23% | 1.29% | 0.36% | -73.60% | -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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $191,000K ÷ $2,322,000K
= 8.23%
The return on equity (ROE) for MKS Instruments Inc has shown fluctuations over the reported periods. From March 31, 2020, to December 31, 2021, the ROE consistently increased from 9.60% to 19.05%, indicating improved efficiency in generating profit from shareholders' equity. However, starting from March 31, 2022, the ROE began to decline, reaching its lowest point at -74.47% by December 31, 2023, signifying a significant drop in profitability relative to equity.
The negative ROE values observed from June 30, 2023, to March 31, 2024, and their subsequent improvement suggest challenges in generating profits compared to the equity invested during those periods. The ROE recovered slightly from the negative territory in June 30, 2024, and continued to improve modestly until December 31, 2024, reaching 8.23%.
Overall, the declining trend in ROE towards the end of the reporting period raises concerns about the company's ability to utilize shareholders' equity effectively to generate returns. Further analysis of the company's financial performance and strategic decisions may be necessary to understand the factors influencing these fluctuations in ROE.
Peer comparison
Dec 31, 2024