MKS Instruments Inc (MKSI)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 465,000 | 341,000 | 332,000 | -1,472,000 | -1,572,000 | -1,432,000 | -1,427,000 | 439,000 | 610,000 | 644,000 | 696,000 | 711,000 | 688,000 | 650,900 | 594,300 | 515,900 | 452,100 | 369,200 | 322,700 | 287,600 |
| Long-term debt | US$ in thousands | 4,619,000 | 4,939,000 | 5,115,000 | 4,894,000 | 4,953,000 | 5,052,000 | 5,073,000 | 5,076,000 | 5,122,000 | — | — | — | 825,000 | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 6.70% | 4.65% | 4.52% | -20.11% | -21.17% | -19.02% | -18.86% | 4.61% | 6.35% | 15.52% | 22.24% | 23.49% | 18.53% | 23.86% | 22.74% | 20.90% | 19.16% | 16.58% | 15.17% | 14.01% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $465,000K ÷ ($4,619,000K + $2,322,000K)
= 6.70%
The return on total capital for MKS Instruments Inc has exhibited fluctuations over the periods reported. From March 31, 2020, to September 30, 2021, there was a steady increase in the return on total capital, reaching a peak of 23.86% in September 2021. However, starting from December 31, 2021, there was a decline in the return on total capital, with a notable decrease to 6.35% by the end of that year.
In the following periods, the return on total capital continued to decline significantly, reaching negative values in the second half of 2023. The return on total capital improved in the latter part of 2024, showing positive values once again and reaching 6.70% by December 31, 2024.
Overall, the return on total capital trended positively until September 2021 but experienced significant volatility and decreased considerably from late 2021 to mid-2023 before showing signs of recovery in late 2024. This could indicate changes in the company's capital allocation efficiency and profitability during the analyzed period.
Peer comparison
Dec 31, 2024