Universal Display (OLED)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 148,461 | 135,376 | 127,896 | 114,991 | 85,478 |
| Inventory | US$ in thousands | 182,938 | 175,795 | 183,220 | 134,160 | 91,591 |
| Inventory turnover | 0.81 | 0.77 | 0.70 | 0.86 | 0.93 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $148,461K ÷ $182,938K
= 0.81
To analyze Universal Display's inventory turnover, we observe a decreasing trend from 2020 to 2022, with the ratio declining from 0.93 to 0.70. This could indicate that the company is holding onto its inventory for a longer period before selling it. However, there was a slight improvement in 2023 with a ratio of 0.77, followed by a further increase to 0.81 in 2024. Despite these improvements, the inventory turnover ratios are generally low, suggesting that the company may be facing challenges with efficiently managing its inventory levels, potentially leading to increased carrying costs or obsolete inventory. Further investigation into inventory management practices and sales strategies may be warranted to optimize operations and improve profitability.
Peer comparison
Dec 31, 2024