MKS Instruments Inc (MKSI)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -1,572,000 | 610,000 | 690,000 | 452,000 | 221,900 |
| Long-term debt | US$ in thousands | 4,953,000 | 5,122,000 | 825,000 | — | — |
| Total stockholders’ equity | US$ in thousands | 2,472,000 | 4,483,000 | 2,887,000 | 2,360,000 | 2,022,000 |
| Return on total capital | -21.17% | 6.35% | 18.59% | 19.15% | 10.97% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-1,572,000K ÷ ($4,953,000K + $2,472,000K)
= -21.17%
The return on total capital for MKS Instruments Inc has shown variability over the past five years. In 2023, the return on total capital was negative at -21.17%, indicating that the company generated a return lower than the total capital employed. This represents a significant decline compared to the previous year when the return on total capital was 6.35%.
In 2021 and 2020, MKS Instruments Inc displayed stronger performance with return on total capital of 18.59% and 19.15% respectively, suggesting efficient utilization of capital to generate profits. The company's return on total capital in 2019 was 10.97%, indicating a moderate performance in capital efficiency.
Overall, the fluctuating trend in return on total capital for MKS Instruments Inc indicates the company's varying ability to generate returns relative to the total capital employed over the years, with the most recent year reflecting a concerning negative return. Further analysis of the factors impacting the financial performance and capital allocation decisions may be warranted to understand the underlying reasons for these fluctuations.
Peer comparison
Dec 31, 2023