MKS Instruments Inc (MKSI)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.54 | 0.45 | 0.18 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.67 | 0.53 | 0.22 | 0.00 | 0.00 |
| Debt-to-equity ratio | 2.00 | 1.14 | 0.29 | 0.00 | 0.00 |
| Financial leverage ratio | 3.69 | 2.56 | 1.57 | 1.65 | 1.69 |
The solvency ratios of MKS Instruments Inc indicate the company's ability to meet its long-term financial obligations. The trend suggests a gradual increase in leverage over the past five years.
The debt-to-assets ratio has risen from 0.00 in 2020 and 2019 to 0.54 in 2023, indicating that 54% of the company's assets are financed by debt. The debt-to-assets ratio has been on an upward trajectory, which suggests a growing reliance on debt to fund operations and investments.
Similarly, the debt-to-capital ratio has increased steadily from 0.00 in 2020 and 2019 to 0.67 in 2023. This ratio signifies that 67% of the company's capital is funded by debt. The rise in this ratio indicates an increasing proportion of debt in the capital structure of the company.
The debt-to-equity ratio has also shown a significant increase from 0.00 in 2020 and 2019 to 2.00 in 2023, revealing that the company has $2 of debt for every $1 of equity. This ratio signifies a higher level of financial risk as compared to previous years.
Furthermore, the financial leverage ratio has consistently increased over the years, reaching 3.69 in 2023. This ratio indicates that the company's assets are financed by debt to a higher extent, signifying a greater risk of financial distress.
Overall, the trend in solvency ratios reflects MKS Instruments Inc's higher reliance on debt financing over the years, which may pose challenges in managing debt repayment obligations and maintaining financial stability in the long run.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | -4.42 | 3.45 | 27.60 | 15.59 | 5.03 |
Interpreting the interest coverage ratios of MKS Instruments Inc over the past five years reveals a fluctuating trend. The interest coverage ratio indicates the company's ability to cover its interest expenses with its operating income.
In 2023, the interest coverage ratio of -4.42 suggests that MKS Instruments Inc's operating income was insufficient to cover its interest expenses, indicating potential financial distress. This represents a significant decline from the prior year.
However, in 2022, the ratio improved to 3.45, indicating that the company's operating income was able to cover its interest expenses 3.45 times over. This improvement from the previous year suggests a more favorable financial position.
The significant increase in the interest coverage ratio in 2021 to 27.60 indicates a strong ability to cover interest expenses comfortably, signaling financial stability and profitability. This was a substantial improvement from the ratios in the two preceding years.
Similarly, in 2020 and 2019, the interest coverage ratios of 15.59 and 5.03, respectively, also demonstrated the company's ability to meet its interest obligations with operating income, albeit at a lower level compared to 2021.
Overall, while MKS Instruments Inc experienced fluctuations in its interest coverage ratio, with a notable decline in 2023, the company demonstrated varying levels of ability to cover its interest expenses in the previous years, with 2021 standing out as a particularly strong performance year in terms of interest coverage.