MKS Instruments Inc (MKSI)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,619,000 | 4,953,000 | 5,122,000 | 825,000 | — |
| Total stockholders’ equity | US$ in thousands | 2,322,000 | 2,472,000 | 4,483,000 | 2,887,000 | 2,360,000 |
| Debt-to-capital ratio | 0.67 | 0.67 | 0.53 | 0.22 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,619,000K ÷ ($4,619,000K + $2,322,000K)
= 0.67
The debt-to-capital ratio for MKS Instruments Inc has experienced a significant increase over the period from December 31, 2020, to December 31, 2024. Starting at 0.00 in 2020, the ratio rose steadily to 0.22 in 2021, indicating a slight rise in debt relative to total capital. Subsequently, the ratio saw a more notable increase to 0.53 by the end of 2022, and further climbed to 0.67 in both 2023 and 2024.
This upward trend suggests that MKS Instruments Inc has been utilizing more debt financing in relation to its total capital structure in recent years. A higher debt-to-capital ratio may indicate increased financial leverage and potential risks associated with servicing the debt obligations. It is essential for investors and stakeholders to monitor this ratio closely, as it provides insights into the company's financial health and risk exposure related to its debt levels.
Peer comparison
Dec 31, 2024