Universal Display (OLED)
Payables 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 |
| Payables | US$ in thousands | 10,933 | 9,519 | 14,955 | 13,801 | 13,296 |
| Payables turnover | 12.38 | 13.44 | 7.69 | 6.19 | 5.67 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $135,376K ÷ $10,933K
= 12.38
The payables turnover ratio measures how efficiently a company is managing its accounts payable. Universal Display Corp.'s payables turnover has shown an increasing trend over the past five years, indicating that the company is paying its suppliers more frequently.
In 2023, the payables turnover ratio was 12.38, which means that Universal Display Corp. converted its accounts payable into purchases approximately 12.38 times during the year. This is an improvement compared to the previous year's ratio of 13.44.
The increasing payables turnover ratio suggests that Universal Display Corp. is managing its payables effectively by paying suppliers more quickly. This may indicate strong supplier relationships, good cash management practices, or efficient inventory turnover.
However, it is important to consider industry standards and benchmarking against competitors to get a better understanding of Universal Display Corp.'s payables turnover performance. Additionally, further analysis of the company's financial statements and operational performance would provide more insights into the reasons behind the changes in the payables turnover ratio over time.
Peer comparison
Dec 31, 2023