Universal Display (OLED)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 3.58 | 5.28 | 4.78 | 5.21 | 6.70 | |
| DSO | days | 101.90 | 69.10 | 76.34 | 70.01 | 54.46 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.58
= 101.90
Days Sales Outstanding (DSO) is a crucial financial metric used to evaluate how efficiently a company collects revenue from its sales. Universal Display Corp.'s DSO has shown fluctuations over the past five years. In 2023, the DSO was 88.55 days, indicating that, on average, it took the company approximately 88.55 days to collect revenue from its sales. This is a significant increase compared to the previous year's DSO of 54.85 days, suggesting a potential issue with the company's accounts receivable management.
The DSO trend for Universal Display Corp. has been volatile, with fluctuations in the range of 54.46 days to 88.55 days over the past five years. The spike in DSO in 2023 may warrant further investigation into the company's credit policies, collection processes, and customer payment behavior to identify any underlying causes for the increase. It is essential for the company to monitor its DSO closely and work towards improving efficiency in accounts receivable management to ensure timely collection of sales revenue and maintain healthy cash flow.
Peer comparison
Dec 31, 2023