MKS Instruments Inc (MKSI)

Return on total capital

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	464,000	-1,572,000	610,000	690,000	452,000
Long-term debt	US$ in thousands	4,619,000	4,953,000	5,122,000	825,000	—
Total stockholders’ equity	US$ in thousands	2,322,000	2,472,000	4,483,000	2,887,000	2,360,000
Return on total capital		6.68%	-21.17%	6.35%	18.59%	19.15%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $464,000K ÷ ($4,619,000K + $2,322,000K)
= 6.68%

MKS Instruments Inc's return on total capital has displayed fluctuations over the past five years. The ratio was relatively stable from December 31, 2020, to December 31, 2021, showing a slight decrease from 19.15% to 18.59%. However, a significant decline was observed by December 31, 2022, with the return on total capital dropping to 6.35%.

The most notable change occurred by December 31, 2023, when the return on total capital plummeted to -21.17%, indicating a substantial downturn in the company's ability to generate profit from its total capital. This negative value suggests that MKS Instruments experienced challenges in utilizing its capital efficiently to generate returns during that period.

There was a recovery by December 31, 2024, with the return on total capital improving to 6.68%. While this indicates a positive trend compared to the previous year, it is still below the levels seen in the initial years of the analysis.

Overall, the fluctuation in MKS Instruments Inc's return on total capital highlights the company's varying performance in generating profits relative to its total capital over the five-year period. Further analysis of the company's financial and operational strategies would be necessary to understand the reasons behind these fluctuations and to assess the sustainability of its profitability going forward.