MKS Instruments Inc (MKSI)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.54 | 0.55 | 0.58 | 0.55 | 0.54 | 0.55 | 0.55 | 0.45 | 0.45 | 0.00 | 0.00 | 0.00 | 0.18 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.67 | 0.67 | 0.70 | 0.67 | 0.67 | 0.67 | 0.67 | 0.53 | 0.53 | 0.00 | 0.00 | 0.00 | 0.22 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 1.99 | 2.06 | 2.29 | 2.02 | 2.00 | 2.04 | 2.03 | 1.14 | 1.14 | 0.00 | 0.00 | 0.00 | 0.29 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.70 | 3.76 | 3.97 | 3.68 | 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 |
The solvency ratios of MKS Instruments Inc show the company's ability to meet its long-term financial obligations and the extent of its reliance on debt financing.
1. Debt-to-assets ratio:
- MKS Instruments Inc had a consistent debt-to-assets ratio of 0.00 from March 2020 to June 2022, indicating a low level of debt relative to its total assets.
- However, there was a significant increase in the ratio starting from December 2022, reaching 0.54 by December 2024, which suggests a higher proportion of debt in relation to the company's assets.
2. Debt-to-capital ratio:
- Similar to the debt-to-assets ratio, the debt-to-capital ratio remained low at 0.00 until December 2022 before gradually increasing to 0.67 by December 2024, indicating a higher reliance on debt to finance the company's operations.
3. Debt-to-equity ratio:
- MKS Instruments Inc maintained a debt-to-equity ratio of 0.00 from March 2020 to September 2022, suggesting a balanced capital structure with minimal debt relative to equity.
- However, starting from December 2022, the ratio rose significantly, reaching 1.99 by December 2024, indicating a higher level of debt compared to equity in the company's capital structure.
4. Financial leverage ratio:
- The financial leverage ratio shows a similar trend to the debt ratios, with a steady decrease from 1.69 in March 2020 to 1.57 in December 2021, followed by a sharp increase to 3.70 by June 2023.
- This indicates a significant increase in the company's financial leverage and potential risk associated with higher levels of debt in its capital structure.
Overall, the solvency ratios of MKS Instruments Inc suggest a shift towards a more leveraged financial position in recent years, emphasizing the need for careful monitoring of the company's debt levels and financial health.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio of MKS Instruments Inc shows a generally improving trend from March 2020 to June 2022, indicating the company's increasing ability to cover its interest obligations from its operating income. The ratio steadily increased from 6.55 in March 2020 to a peak of 29.62 in March 2022.
However, starting from September 2022, the interest coverage ratio experienced a significant decline, dropping to as low as 1.07 in September 2024. This downward trend suggests that the company's operating income may no longer be sufficient to cover its interest expenses effectively.
The sharp decline in the interest coverage ratio from September 2022 to December 2024 may raise concerns about the company's financial health and its ability to meet its debt obligations. It would be essential for stakeholders to closely monitor this ratio and the company's financial performance to assess any potential risks or challenges in the near future.