Universal Display (OLED)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 3.58 4.07 4.95 5.49 5.28 6.47 6.61 4.84 4.78 5.70 5.24 4.93 5.21 3.92 5.39 5.20 6.70 5.68 5.28 5.59
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
Working capital turnover 0.72 0.79 0.76 0.71 0.81 0.71 0.74 0.73 0.75 0.63 0.63 0.57 0.56 0.55 0.55 0.64 0.64 0.64 0.64 0.56

Activity ratios provide insights into how efficiently a company is managing its resources. Let's analyze the activity ratios of Universal Display Corp. based on the provided data:

1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company sells and replaces its inventory during a period.
- Universal Display Corp.'s inventory turnover has been in the range of 0.70 to 0.77 over the last eight quarters.
- A low inventory turnover indicates that the company may be holding excessive inventory relative to its sales levels.

2. Receivables Turnover:
- The receivables turnover ratio reflects how efficiently a company collects its accounts receivable.
- Universal Display Corp.'s receivables turnover has ranged from 4.12 to 7.70 over the past eight quarters.
- A higher receivables turnover indicates that the company is collecting its receivables more quickly, which is a positive sign of efficient credit management.

3. Payables Turnover:
- The payables turnover ratio shows how quickly a company pays its suppliers.
- Universal Display Corp.'s payables turnover has varied significantly from 4.61 to 18.09 in the last eight quarters.
- A higher payables turnover may imply that the company is paying its suppliers more quickly, potentially indicating strong cash management practices.

4. Working Capital Turnover:
- The working capital turnover ratio indicates how efficiently a company is using its working capital to generate sales.
- Universal Display Corp.'s working capital turnover has fluctuated between 0.71 and 0.81 over the past eight quarters.
- A higher working capital turnover ratio suggests that the company is effectively utilizing its resources to generate revenue.

In conclusion, Universal Display Corp. should focus on improving its inventory turnover to avoid potential obsolescence, maintain its efficient receivables turnover to manage cash flow effectively, monitor its payables turnover to balance supplier relationships, and continue optimizing its working capital turnover to drive revenue growth.

Average number of days

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
Days of inventory on hand (DOH) days 473.98 511.48 484.05 498.03 522.89 505.77 487.06 418.74 425.85 404.04 375.81 428.87 391.10 400.30 437.04 329.62 309.69 279.30 295.29 401.23
Days of sales outstanding (DSO) days 101.90 89.57 73.80 66.47 69.10 56.44 55.25 75.38 76.34 64.00 69.63 73.98 70.01 93.21 67.67 70.16 54.46 64.26 69.11 65.24
Number of days of payables days 29.48 58.15 20.18 27.84 27.17 37.49 41.31 79.12 47.47 36.38 37.11 62.33 58.93 45.82 52.97 46.15 64.39 44.56 38.03 41.42

Universal Display Corp. has seen fluctuations in its activity ratios over the past several quarters. The Days of Inventory on Hand (DOH) has ranged from a high of 522.89 days in Q4 2022 to a low of 418.74 days in Q1 2022, with Q4 2023 showing a level of 473.98 days. This indicates that the company holds its inventory for approximately 419 to 523 days on average before it is sold.

In terms of Days of Sales Outstanding (DSO), Universal Display Corp. has managed to collect its receivables more efficiently in recent quarters, with Q4 2023 showing a DSO of 88.55 days compared to a low of 47.41 days in Q2 2022. This suggests that the company takes approximately 48 to 89 days on average to collect its outstanding sales.

On the other hand, the Number of Days of Payables has varied significantly, ranging from a low of 20.18 days in Q2 2023 to a high of 79.12 days in Q1 2022, with the latest figure in Q4 2023 at 29.48 days. This implies that the company takes around 20 to 79 days on average to pay its suppliers.

Overall, Universal Display Corp. may need to monitor its activity ratios closely to ensure efficient management of inventory, receivables, and payables in order to optimize cash flow and working capital management.

Long-term

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
Fixed asset turnover 3.29 3.36 3.85 4.11 4.30 4.31 4.18 4.32 4.30 4.61 4.61 4.18 4.20 4.02 4.02 4.86 4.61 4.33 4.23 3.62
Total asset turnover 0.35 0.36 0.39 0.39 0.40 0.39 0.38 0.38 0.38 0.38 0.39 0.34 0.34 0.32 0.32 0.38 0.36 0.35 0.35 0.30

The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate sales. Universal Display Corp.'s fixed asset turnover has fluctuated over the periods provided, ranging from 3.29 to 4.32. This indicates that for every dollar invested in fixed assets, the company has generated revenue between 3.29 and 4.32 dollars.

On the other hand, the total asset turnover ratio reflects how well a company utilizes all its assets to generate revenue. Universal Display Corp.'s total asset turnover ratio has been relatively stable, hovering around 0.35 to 0.40. This suggests that the company generates between 0.35 to 0.40 dollars in sales for every dollar of total assets it owns.

Overall, Universal Display Corp. appears to be effectively using its fixed assets to generate sales, as demonstrated by the generally high fixed asset turnover ratios. However, the total asset turnover ratios indicate that the company may have opportunities to improve its overall asset utilization efficiency.