Universal Display (OLED)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 647,684 | 643,711 | 623,161 | 611,221 | 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 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | — | 157,566 | 145,281 | 143,445 | 137,713 | 138,028 | 131,879 | 128,832 | 118,988 | 129,820 | 107,815 | 102,113 | 96,830 | 92,003 | 88,350 |
| Fixed asset turnover | — | — | — | — | — | — | 3.85 | 4.11 | 4.30 | 4.31 | 4.18 | 4.32 | 4.30 | 4.61 | 4.02 | 4.18 | 4.20 | 4.02 | 4.02 | 4.86 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $647,684K ÷ $—K
= —
The fixed asset turnover ratio measures how efficiently a company is generating revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is able to generate more sales from its fixed assets.
Analyzing Universal Display's fixed asset turnover ratio from March 31, 2020, to December 31, 2024, we can observe some fluctuations in the ratio over time. The ratio started at 4.86 on March 31, 2020, showing that Universal Display generated $4.86 in sales for every $1 invested in fixed assets. Subsequently, the ratio ranged between 4.02 and 4.32 until June 30, 2022, indicating consistent efficiency in utilizing fixed assets to generate revenue.
However, there was a slight downward trend in the fixed asset turnover ratio from June 30, 2022, to March 31, 2023, where it decreased to 3.85. This could suggest a potential decrease in sales generated per fixed asset invested during that period.
Looking at the later dates, starting from September 30, 2022, the fixed asset turnover ratio improved and reached 4.30 by December 31, 2022, showing a recovery in the company's ability to generate revenue from its fixed assets.
From March 31, 2023, the data for the fixed asset turnover ratio is unavailable. This lack of data makes it challenging to assess the company's performance in utilizing fixed assets efficiently during the latter part of 2023 and extending into 2024.
In conclusion, Universal Display generally maintained a healthy fixed asset turnover ratio over the analyzed period, indicating effective utilization of fixed assets to generate sales. However, the temporary decline in the ratio in mid-2022 and the absence of data for the latter part of 2023 and beyond suggest the need for further monitoring to assess the company's ongoing efficiency in this area.
Peer comparison
Dec 31, 2024