MKS Instruments Inc (MKSI)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	465,000	341,000	332,000	-1,472,000	-1,572,000	-1,432,000	-1,427,000	439,000	610,000	644,000	696,000	711,000	688,000	650,900	594,300	515,900	452,100	369,200	322,700	287,600
Interest expense (ttm)	US$ in thousands	284,000	320,000	349,000	358,000	356,000	350,000	337,000	256,000	177,000	99,000	25,000	24,000	24,000	24,300	24,900	26,100	29,000	31,500	38,400	43,900
Interest coverage		1.64	1.07	0.95	-4.11	-4.42	-4.09	-4.23	1.71	3.45	6.51	27.84	29.62	28.67	26.79	23.87	19.77	15.59	11.72	8.40	6.55

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $465,000K ÷ $284,000K
= 1.64

The interest coverage of MKS Instruments Inc has shown a generally positive trend from March 31, 2020, to June 30, 2022, with values ranging from 6.55 to 29.62. This indicates the company's ability to meet its interest obligations from its operating income.

However, there was a significant decline in interest coverage from September 30, 2022, reaching a low of 3.45 on December 31, 2022, and further deteriorating to negative values from March 31, 2023, to December 31, 2024. A negative interest coverage signifies that the company's operating income is insufficient to cover its interest expenses, which raises concerns about the company's financial health.

It is essential for investors and stakeholders to closely monitor MKS Instruments Inc's interest coverage ratio going forward to assess its ability to service its debt and meet its financial obligations. Furthermore, management actions to improve profitability and liquidity may be necessary to enhance the company's financial stability and performance.