MKS Instruments Inc (MKSI)
Debt-to-equity 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-equity ratio | 2.00 | 1.14 | 0.29 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,953,000K ÷ $2,472,000K
= 2.00
The debt-to-equity ratio of MKS Instruments Inc has shown a significant increase from 2019 to 2023, indicating a higher level of debt relative to equity over the years. In 2023, the ratio stood at 2.00, which signifies that the company's debt level is twice the size of its equity. This suggests a substantial reliance on debt financing to support the company's operations and growth initiatives. The ratio has been on an upward trend since 2020, reflecting a potential shift in the company's capital structure towards higher debt levels. Investors and creditors may view this increase in the debt-to-equity ratio as a higher risk factor, as it indicates a higher financial leverage and debt burden for MKS Instruments Inc.
Peer comparison
Dec 31, 2023