Universal Display (OLED)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 576,429 | 616,619 | 553,525 | 428,867 | 405,177 |
| Receivables | US$ in thousands | 160,934 | 116,737 | 115,766 | 82,261 | 60,452 |
| Receivables turnover | 3.58 | 5.28 | 4.78 | 5.21 | 6.70 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $576,429K ÷ $160,934K
= 3.58
The receivables turnover ratio measures the efficiency of Universal Display Corp. in collecting outstanding receivables from its customers over a particular period. A higher turnover ratio is generally preferred as it indicates that the company is collecting its receivables more quickly.
Looking at the trend of Universal Display Corp.'s receivables turnover ratio from 2019 to 2023, there is some fluctuation in the values. In 2019, the receivables turnover ratio was relatively high at 6.70, indicating that the company was efficient in collecting its receivables.
However, the ratio decreased in the following years, reaching a low of 4.12 in 2023. This decline may suggest a longer collection period for receivables in that year, which could potentially impact the company's cash flow and working capital management.
It is important for Universal Display Corp. to monitor and manage its receivables effectively to ensure timely collections and maintain a healthy cash flow position. Further analysis of the underlying reasons for the fluctuation in the receivables turnover ratio is recommended to identify any potential issues that may need to be addressed.
Peer comparison
Dec 31, 2023