Universal Display (OLED)
Days of sales outstanding (DSO)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 3.58 | 4.07 | 4.95 | 5.49 | 5.28 | 6.47 | 6.61 | 4.84 | 4.78 | 5.70 | 5.24 | 4.93 | 5.21 | 3.92 | 5.39 | 5.20 | 6.70 | 5.68 | 5.28 | 5.59 | |
| DSO | days | 101.90 | 89.57 | 73.80 | 66.47 | 69.10 | 56.44 | 55.25 | 75.38 | 76.34 | 64.00 | 69.63 | 73.98 | 70.01 | 93.21 | 67.67 | 70.16 | 54.46 | 64.26 | 69.11 | 65.24 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.58
= 101.90
To analyze Universal Display Corp.'s Days Sales Outstanding (DSO) trend, we consider the values provided in the table.
The DSO represents the average number of days it takes for a company to collect payment after a sale is made. A lower DSO is generally more favorable as it indicates faster cash collection and a more efficient accounts receivable management.
From the data provided, we observe a fluctuating trend in Universal Display Corp.'s DSO over the past eight quarters. In Q1 2022, the DSO was relatively high at 67.20 days but decreased in subsequent quarters, reaching a low of 48.06 days in Q3 2022. However, there was a noticeable increase in DSO in Q4 2022 to 54.85 days.
The trend continued into 2023, with DSO figures initially decreasing before rising again. In Q4 2023, the DSO increased to 88.55 days, marking a significant rise from the previous quarter's 75.96 days.
An increase in DSO can indicate potential challenges in collecting receivables promptly, which may impact cash flow and working capital management. It is essential for Universal Display Corp. to monitor and potentially improve its accounts receivable processes to ensure timely collections and maintain healthy cash flows.
Overall, the fluctuating trend in Universal Display Corp.'s DSO suggests variations in the efficiency of the company's credit and collection processes. Further analysis and comparison with industry benchmarks can provide insights into the effectiveness of its accounts receivable management practices.
Peer comparison
Dec 31, 2023