MKS Instruments Inc (MKSI)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Debt-to-capital ratio		0.67	0.53	0.22	0.00	0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,953,000K ÷ ($4,953,000K + $2,472,000K)
= 0.67

The debt-to-capital ratio of MKS Instruments Inc has shown a significant increase over the past five years, indicating a shift towards a higher reliance on debt to finance its operations and investments.

In 2019 and 2020, the company had a debt-to-capital ratio of 0.00, suggesting that there was no debt in its capital structure during those years. However, starting in 2021, the ratio began to increase steadily, reaching 0.22 by the end of that year. This indicates that the company started to take on debt as a part of its capital structure.

The trend continued in the following years, with the ratio reaching 0.53 by the end of 2022 and further increasing to 0.67 at the end of 2023. This demonstrates a significant rise in the proportion of debt compared to capital in the company's financial structure.

The increasing trend in the debt-to-capital ratio may suggest that MKS Instruments Inc is utilizing debt financing to support its growth initiatives, acquisitions, or capital expenditures. It is important to closely monitor this ratio to assess the company's ability to manage its debt levels effectively and evaluate the potential risks associated with its capital structure.