Universal Display (OLED)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	135,376	129,455	132,603	127,703	127,896	130,041	124,126	124,856	114,991	109,746	101,643	86,317	85,478	76,682	70,590	82,019	75,374	75,497	74,334	61,897
Inventory	US$ in thousands	175,795	181,406	175,855	174,245	183,220	180,194	165,635	143,240	134,160	121,485	104,653	101,422	91,591	84,098	84,523	74,068	63,953	57,771	60,138	68,041
Inventory turnover		0.77	0.71	0.75	0.73	0.70	0.72	0.75	0.87	0.86	0.90	0.97	0.85	0.93	0.91	0.84	1.11	1.18	1.31	1.24	0.91

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $135,376K ÷ $175,795K
= 0.77

The inventory turnover for Universal Display Corp. has been relatively stable over the past eight quarters, ranging from 0.70 to 0.87. This indicates that the company is able to sell and replace its inventory at a moderate pace. A lower inventory turnover may suggest slow-moving inventory or overstocking, while a higher turnover could indicate efficient inventory management but potentially lead to stockouts. It is important for the company to monitor inventory turnover to ensure optimal inventory levels, minimize carrying costs, and maximize cash flow.

Peer comparison

Dec 31, 2023

Company name

Symbol

Inventory turnover

Universal Display

OLED

0.77

Vishay Intertechnology Inc

VSH

3.75