MKS Instruments Inc (MKSI)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.54 | 0.54 | 0.45 | 0.18 | 0.00 |
| Debt-to-capital ratio | 0.67 | 0.67 | 0.53 | 0.22 | 0.00 |
| Debt-to-equity ratio | 1.99 | 2.00 | 1.14 | 0.29 | 0.00 |
| Financial leverage ratio | 3.70 | 3.69 | 2.56 | 1.57 | 1.65 |
The solvency ratios of MKS Instruments Inc show varying levels of leverage and debt over the years. The Debt-to-assets ratio has increased from 0.00 in 2020 to 0.54 in 2024, indicating that the company's debt relative to its total assets has been on the rise. Similarly, the Debt-to-capital ratio has also increased significantly from 0.00 in 2020 to 0.67 in 2024, reflecting higher utilization of debt in the capital structure.
The Debt-to-equity ratio has shown a substantial increase from 0.00 in 2020 to 1.99 in 2024, suggesting a significant increase in financial leverage and potential risk for the company. Furthermore, the Financial leverage ratio has also seen a substantial increase from 1.65 in 2020 to 3.70 in 2024, highlighting the company's reliance on debt to finance its operations.
Overall, the increasing trend in these solvency ratios indicates that MKS Instruments Inc has been taking on more debt over the years, which may raise concerns about the company's ability to meet its financial obligations in the long run. Investors and stakeholders should closely monitor these ratios to assess the company's financial health and risk profile.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 1.63 | -4.42 | 3.45 | 27.60 | 15.59 |
The interest coverage ratio of MKS Instruments Inc has fluctuated over the years as follows:
- As of December 31, 2020, the interest coverage ratio was 15.59, indicating the company's strong ability to cover its interest expenses with operating income.
- By December 31, 2021, the interest coverage ratio improved significantly to 27.60, reflecting an even stronger capacity to meet interest payment obligations.
- However, by December 31, 2022, the interest coverage ratio decreased to 3.45, which may suggest a tighter position in terms of covering interest expenses with operating income.
- The ratio further deteriorated to -4.42 by December 31, 2023, indicating a negative coverage situation where operating income may not be sufficient to meet interest obligations.
- Subsequently, by December 31, 2024, the interest coverage ratio slightly improved to 1.63, but still implying a situation where operating income may not fully cover interest costs.
It is important for investors and stakeholders to closely monitor the interest coverage ratio of MKS Instruments Inc as it provides insights into the company's ability to handle its interest payments and assess its financial risk.