MKS Instruments Inc (MKSI)
Debt-to-equity 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-equity ratio | 1.99 | 2.00 | 1.14 | 0.29 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,619,000K ÷ $2,322,000K
= 1.99
The debt-to-equity ratio of MKS Instruments Inc has shown a significant increase over the past years, indicating a shift towards a more leveraged capital structure. In December 2020, the ratio was at 0.00, reflecting a debt-free position. However, by December 2024, the ratio had risen to 1.99, surpassing a level of 1.0, suggesting that the company's debt levels have exceeded its equity. This increase in the ratio could be a cause for concern as it signifies a higher reliance on debt financing, which may lead to increased financial risk and potential difficulties in meeting debt obligations. It is important for stakeholders to monitor this trend closely to assess the company's ability to manage its debt load effectively.
Peer comparison
Dec 31, 2024