Universal Display (OLED)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 135,376 | 127,896 | 114,991 | 85,478 | 75,374 |
| Inventory | US$ in thousands | 175,795 | 183,220 | 134,160 | 91,591 | 63,953 |
| Inventory turnover | 0.77 | 0.70 | 0.86 | 0.93 | 1.18 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $135,376K ÷ $175,795K
= 0.77
The inventory turnover for Universal Display Corp. has been fluctuating over the past five years. In 2023, the inventory turnover ratio was 0.77, showing a slight increase from the previous year's ratio of 0.70. However, compared to 2021 and 2020, where the ratios were 0.86 and 0.93 respectively, the efficiency of inventory management has decreased in 2023.
A lower inventory turnover ratio indicates that the company is selling its inventory at a slower rate, which may lead to excessive inventory levels or potential obsolescence risks. It could also suggest inefficiencies in production or sales processes.
It would be important for Universal Display Corp. to analyze the reasons behind the declining inventory turnover and implement strategies to improve efficiency in inventory management, such as optimizing inventory levels, streamlining production processes, or enhancing sales and marketing efforts to stimulate demand for its products.
Peer comparison
Dec 31, 2023