The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. MKS Instruments's quick ratio for the quarter that ended in Dec. 2023 was 2.01.
MKS Instruments has a quick ratio of 2.01. It generally indicates good short-term financial strength.
The historical rank and industry rank for MKS Instruments's Quick Ratio or its related term are showing as below:
MKSI'
s Quick Ratio Range Over the Past 10 Years
Min: 1.91 Med: 3.26 Max: 8.65
Current: 2.01
During the past 13 years, MKS Instruments's highest Quick Ratio was 8.65. The lowest was 1.91. And the median was 3.26.
MKSI's Quick Ratio is ranked better than 65.85% of 2486
companies
in the Hardware industry
Industry Median: 1.48
vs MKSI: 2.01
MKS Instruments Quick Ratio Historical Data
The historical data trend for MKS Instruments's Quick Ratio 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.
Competitive Comparison of MKS Instruments's Quick Ratio
For the Scientific & Technical Instruments subindustry, MKS Instruments's Quick Ratio, along with its competitors' market caps and Quick Ratio 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 Quick Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, MKS Instruments's Quick Ratio distribution charts can be found below:
* The bar in red indicates where MKS Instruments's Quick Ratio falls into.
MKS Instruments Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
MKS Instruments's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* 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.
MKS Instruments (NAS:MKSI) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
MKS Instruments Quick Ratio Related Terms
Thank you for viewing the detailed overview of MKS Instruments's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
MKS Instruments (MKS Instruments) Business Description
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.
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