MKS Instruments Inc (MKSI)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,118,000 | 9,140,000 | 9,230,000 | 11,366,000 | 11,495,000 | 11,372,000 | 4,749,000 | 4,649,000 | 4,540,000 | 4,365,900 | 4,208,900 | 4,017,900 | 3,903,800 | 3,750,900 | 3,631,100 | 3,474,900 | 3,416,300 | 3,354,540 | 3,381,950 | 3,412,740 |
| 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 |
| Financial leverage ratio | 3.69 | 3.69 | 3.70 | 2.55 | 2.56 | 2.74 | 1.52 | 1.54 | 1.57 | 1.60 | 1.61 | 1.63 | 1.65 | 1.68 | 1.71 | 1.69 | 1.69 | 1.70 | 1.74 | 1.78 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,118,000K ÷ $2,472,000K
= 3.69
MKS Instruments Inc's financial leverage ratio has shown a increasing trend over the past five quarters, reaching 3.69 as of December 31, 2023. The financial leverage ratio measures the extent to which a company is using debt to fund its operations and growth. A higher financial leverage ratio indicates a higher level of debt relative to equity in the company's capital structure.
The significant increase in MKS Instruments Inc's financial leverage ratio from 1.52 in June 30, 2022 to 3.70 in June 30, 2023 raises concerns about the company's increasing reliance on debt, which could lead to higher financial risk. However, the ratio has fluctuated in recent quarters, suggesting potential variability in the company's capital structure and financing decisions.
Investors and stakeholders should closely monitor MKS Instruments Inc's financial leverage ratio to assess the company's ability to manage its debt levels effectively and maintain financial stability in the long term. It is also important to consider the company's overall financial health and profitability alongside the financial leverage ratio to get a comprehensive understanding of its financial position.
Peer comparison
Dec 31, 2023