Universal Display (OLED)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 576,429 | 587,141 | 606,620 | 596,616 | 616,619 | 593,834 | 576,896 | 569,995 | 553,525 | 548,821 | 522,282 | 450,590 | 428,867 | 389,053 | 369,489 | 429,689 | 405,177 | 373,591 | 353,626 | 291,607 |
| Property, plant and equipment | US$ in thousands | 175,150 | 174,638 | 157,566 | 145,281 | 143,445 | 137,713 | 138,028 | 131,879 | 128,832 | 118,988 | 113,187 | 107,815 | 102,113 | 96,830 | 92,003 | 88,350 | 87,872 | 86,266 | 83,595 | 80,615 |
| Fixed asset turnover | 3.29 | 3.36 | 3.85 | 4.11 | 4.30 | 4.31 | 4.18 | 4.32 | 4.30 | 4.61 | 4.61 | 4.18 | 4.20 | 4.02 | 4.02 | 4.86 | 4.61 | 4.33 | 4.23 | 3.62 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $576,429K ÷ $175,150K
= 3.29
Universal Display Corp.'s fixed asset turnover has shown a generally declining trend over the past quarters, ranging from 4.30 in Q4 2022 to 3.29 in Q4 2023. The fixed asset turnover ratio indicates how efficiently the company is generating sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio is desirable as it suggests that the company is using its fixed assets more efficiently to generate revenue.
The decreasing trend in fixed asset turnover may indicate that Universal Display Corp. is becoming less efficient in utilizing its fixed assets to generate sales. This could be a cause for concern as it may suggest that the company's investment in fixed assets is not translating into increased revenue as effectively as in the past. It could potentially be a sign of over-investment in fixed assets or underperformance in sales generation.
Further analysis would be necessary to determine the specific reasons behind the declining fixed asset turnover and to identify any potential areas for improvement in asset utilization. Monitoring this ratio over time and comparing it against industry benchmarks can provide valuable insights into Universal Display Corp.'s operational efficiency and performance in managing its fixed assets.
Peer comparison
Dec 31, 2023