Universal Display (OLED)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 0.81 | 0.77 | 0.70 | 0.86 | 0.93 | |
| DOH | days | 449.76 | 473.98 | 522.89 | 425.85 | 391.10 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.81
= 449.76
Based on the provided data, Universal Display's days of inventory on hand (DOH) has shown an increasing trend over the past five years. The DOH has increased from 391.10 days as of December 31, 2020, to 425.85 days as of December 31, 2021, and further to 522.89 days as of December 31, 2022. However, there was a slight decrease in the DOH to 473.98 days as of December 31, 2023, followed by a further decrease to 449.76 days as of December 31, 2024.
The fluctuation in the DOH indicates that Universal Display's efficiency in managing its inventory has varied over the years. A higher number of days of inventory on hand may suggest that the company is holding excess inventory, which could tie up capital and increase holding costs. On the other hand, a lower DOH could indicate potential shortages and potential issues with meeting customer demand.
Overall, Universal Display should aim to strike a balance in its inventory management to optimize working capital and meet customer demand effectively. Monitoring and potentially optimizing the DOH metric can lead to improved operational efficiency and financial performance in the long run.
Peer comparison
Dec 31, 2024