MKS Instruments (MKS Instruments) Gross Margin % : 46.08% (As of Dec. 2023)

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What is MKS Instruments Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. MKS Instruments's Gross Profit for the three months ended in Dec. 2023 was $411 Mil. MKS Instruments's Revenue for the three months ended in Dec. 2023 was $892 Mil. Therefore, MKS Instruments's Gross Margin % for the quarter that ended in Dec. 2023 was 46.08%.

The historical rank and industry rank for MKS Instruments's Gross Margin % or its related term are showing as below:

MKSI' s Gross Margin % Range Over the Past 10 Years
Min: 43.26 Med: 44.81 Max: 47.2
Current: 45.35

During the past 13 years, the highest Gross Margin % of MKS Instruments was 47.20%. The lowest was 43.26%. And the median was 44.81%.

MKSI's Gross Margin % is ranked better than
84.01% of 2439 companies
in the Hardware industry
Industry Median: 24.41 vs MKSI: 45.35

MKS Instruments had a gross margin of 46.08% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for MKS Instruments was -0.50% per year.

MKS Instruments Gross Margin % Historical Data

The historical data trend for MKS Instruments's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

MKS Instruments Gross Margin % Chart

MKS Instruments Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

Get a 7-Day Free Trial

43.71

45.02

46.78

43.61

45.33

MKS Instruments Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															44.66	42.19	46.86	45.71	46.08

Competitive Comparison of MKS Instruments's Gross Margin %

For the Scientific & Technical Instruments subindustry, MKS Instruments's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

MKS Instruments's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, MKS Instruments's Gross Margin % distribution charts can be found below:

* The bar in red indicates where MKS Instruments's Gross Margin % falls into.

MKS Instruments Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

MKS Instruments's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	1642	/	3622
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3622 - 1980)	/	3622
	=	45.33 %

MKS Instruments's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	411	/	892
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(892 - 481)	/	892
	=	46.08 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

MKS Instruments (NAS:MKSI) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

MKS Instruments had a gross margin of 46.08% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

MKS Instruments Gross Margin % Related Terms

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MKS Instruments (MKS Instruments) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » MKS Instruments Inc (NAS:MKSI) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

MKT:Germany MKT:Germany

Address

2 Tech Drive, Suite 201, Andover, MA, USA, 01810

Website

https://www.mksinst.com

MKS Instruments Inc is engaged in providing instruments, subsystems, and process control systems used to measure, monitor, deliver, and control parameters of manufacturing processes. The company's product portfolio includes instruments, components, and systems required in manufacturing products such as flat panel displays, medical devices, and electronic materials, among others used in industrial technologies, semiconductor, life and health sciences, and research and defense markets. The company organizes itself into three reportable business segments: Vacuum Solutions, Photonics Solutions, and Materials Solutions. The Vacuum Solutions segment contributes to roughly half of the company's revenue, and the majority of its revenue is earned in the United States.

Executives

Gerard G Colella	officer: VP Global Business Operations	6 SHATTUCK RD, ANDOVER MA 01810
Elizabeth Mora	director	C/O MKS INSTRUMENTS, INC., 2 TECH DRIVE, SUITE 201, ANDOVER MA 01810
Jacqueline F Moloney	director	222 MERRIMACK STREET, LOWELL MA 01852
David Philip Henry	officer: SVP, Corp Mkt, PMO & Glob Svc	MKS INSTRUMENTS, INC., 2 TECH DRIVE, SUITE 201, ANDOVER MA 01810
Seth H Bagshaw	officer: Vice President, CFO
Kathleen Flaherty Burke	officer: Sr. VP, GC & Secretary	MKS INSTRUMENTS, INC., 2 TECH DRIVE, SUITE 201, ANDOVER MA 01810
Cap Iv, L.l.c.	10 percent owner	C/O THE CARLYLE GROUP, 1001 PENNSYLVANIA AVENUE, NW, WASHINGTON DC 20004
Cap Iv General Partner, L.p.	10 percent owner	C/O THE CARLYLE GROUP, 1001 PENNSYLVANIA AVENUE, NW, WASHINGTON DC 20004
Carlyle Asia Partners Iv, L.p.	10 percent owner	1001 PENNSYLVANIA AVENUE, NW, SUITE 220, WASHINGTON DC 20004
Carlyle Partners Vi Cayman Holdings, L.p.	10 percent owner	C/O WALKERS CORPORATE LIMITED, CAYMAN CORPORATE CENTRE, 27 HOSPITAL RD., GEORGE TOWN, GRAND CAYMAN E9 KY1-9008
Carlyle Group Inc.	10 percent owner	C/O THE CARLYLE GROUP, 1001 PENNSYLVANIA AVENUE, N.W., WASHINGTON DC 20004
Geoffrey Wild	director	108 CHERRY HILL DRIVE, BEVERLY MA 01915
Tc Group Vi Cayman, L.p.	10 percent owner	C/O WALKERS CORPORATE LIMITED, CAYMAN CORPORATE CENTRE, 27 HOSPITAL RD., GEORGE TOWN, GRAND CAYMAN E9 KY1-9008
Cg Subsidiary Holdings L.l.c.	10 percent owner	C/O THE CARLYLE GROUP, SUITE 220 SOUTH, 1001 PENNSYLVANIA AVENUE, N.W., WASHINGTON DC 20004
Tc Group Vi Cayman, L.l.c.	10 percent owner	C/O THE CARLYLE GROUP, SUITE 220 SOUTH, 1001 PENNSYLVANIA AVENUE, N.W., WASHINGTON DC 20004