MKS Instruments Inc (MKSI)

Debt-to-capital ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	4,953,000	5,052,000	5,073,000	5,076,000	5,122,000	—	—	—	825,000	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	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	2,022,000	1,973,500	1,945,500	1,920,900
Debt-to-capital ratio		0.67	0.67	0.67	0.53	0.53	0.00	0.00	0.00	0.22	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	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 exhibited some fluctuations over the past several quarters. As of December 31, 2023, the ratio stood at 0.67, indicating that 67% of the company's capital structure was funded by debt. This level has been consistent for the past three quarters, suggesting a stable reliance on debt financing.

In contrast, in the first quarter of 2023, the debt-to-capital ratio dropped to 0.53 from the previous quarter's 0.67. This decrease may imply a reduction in debt levels relative to total capital during that period, potentially indicating a shift towards a more conservative capital structure.

Notably, the ratios for the quarters ending in September 2022 through March 2022 were all recorded as zero, implying no debt in the capital structure during that period. This could be due to various reasons such as debt repayment, refinancing activities, or a capital injection that eliminated the need for debt financing.

The ratio for December 2021, at 0.22, shows a moderate level of debt in the capital structure compared to the subsequent quarters where the ratio dropped to zero. Similarly, prior to December 2021, the debt-to-capital ratio was consistently reported as zero, indicating a debt-free capital structure for MKS Instruments Inc during those periods.

Overall, the evolution of the debt-to-capital ratio for MKS Instruments Inc demonstrates variations in the company's capital structure over time, reflecting changes in debt levels and potential shifts in financial strategy.