Universal Display (OLED)
Payables 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 |
| Payables | US$ in thousands | 10,933 | 20,624 | 7,330 | 9,741 | 9,519 | 13,357 | 14,048 | 27,064 | 14,955 | 10,939 | 10,334 | 14,741 | 13,801 | 9,626 | 10,244 | 10,370 | 13,296 | 9,217 | 7,744 | 7,024 |
| Payables turnover | 12.38 | 6.28 | 18.09 | 13.11 | 13.44 | 9.74 | 8.84 | 4.61 | 7.69 | 10.03 | 9.84 | 5.86 | 6.19 | 7.97 | 6.89 | 7.91 | 5.67 | 8.19 | 9.60 | 8.81 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $135,376K ÷ $10,933K
= 12.38
The payables turnover ratio measures how efficiently a company manages its accounts payable by evaluating how many times the company pays off its suppliers in a given period.
From the data provided, we can see that Universal Display Corp.'s payables turnover ratio has been fluctuating over the past eight quarters. In Q2 2023, the ratio was 18.09, indicating that the company was able to pay off its suppliers more than 18 times during that quarter. This suggests that Universal Display Corp. was managing its accounts payable very efficiently during that period.
On the other hand, in Q1 2022, the payables turnover ratio was 4.61, which was the lowest among the reported quarters. This signifies that the company took longer to pay off its suppliers during that period compared to the other quarters.
Overall, the payables turnover ratio for Universal Display Corp. has shown variability, with some quarters reflecting strong efficiency in managing payables while others indicating relatively slower payment to suppliers. It's important to analyze the underlying reasons for these fluctuations to better understand the company's working capital management practices and supplier relationships.
Peer comparison
Dec 31, 2023