MKS Instruments Inc (MKSI)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,118,000 | 11,495,000 | 4,540,000 | 3,903,800 | 3,416,300 |
| Total stockholders’ equity | US$ in thousands | 2,472,000 | 4,483,000 | 2,887,000 | 2,360,000 | 2,022,000 |
| Financial leverage ratio | 3.69 | 2.56 | 1.57 | 1.65 | 1.69 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,118,000K ÷ $2,472,000K
= 3.69
The financial leverage ratio of MKS Instruments Inc has increased significantly over the past five years, indicating a rising level of financial leverage. The ratio has steadily increased from 1.69 in 2019 to 3.69 in 2023. This suggests that the company has been relying more on debt to finance its operations and growth over the years.
A financial leverage ratio above 1 indicates that the company has more debt than equity in its capital structure. A higher financial leverage ratio implies higher financial risk, as the company's debt obligations may become harder to meet, especially during economic downturns or periods of financial distress.
It is important for investors and stakeholders to closely monitor the financial leverage ratio of MKS Instruments Inc to assess its ability to manage its debt levels effectively and to ensure its long-term financial stability.
Peer comparison
Dec 31, 2023