MKS Instruments Inc (MKSI)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,590,000 | 9,118,000 | 11,495,000 | 4,540,000 | 3,903,800 |
| Total stockholders’ equity | US$ in thousands | 2,322,000 | 2,472,000 | 4,483,000 | 2,887,000 | 2,360,000 |
| Financial leverage ratio | 3.70 | 3.69 | 2.56 | 1.57 | 1.65 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,590,000K ÷ $2,322,000K
= 3.70
The financial leverage ratio of MKS Instruments Inc has shown a fluctuating trend over the years based on the provided data. It was 1.65 as of December 31, 2020, and decreased to 1.57 by December 31, 2021. However, there was a significant increase in the ratio to 2.56 by December 31, 2022, followed by a substantial further increase to 3.69 by December 31, 2023. The ratio remained fairly stable at 3.70 as of December 31, 2024.
This indicates that the company's reliance on debt to finance its operations has been increasing significantly in recent years, which may raise concerns about its financial risk and the ability to meet debt obligations. It is important for stakeholders to closely monitor the trend in the financial leverage ratio to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2024