Universal Display (OLED)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 576,429 | 587,141 | 606,620 | 596,616 | 616,619 | 593,834 | 576,896 | 569,995 | 553,525 | 548,821 | 522,282 | 450,590 | 428,867 | 389,053 | 369,489 | 429,689 | 405,177 | 373,591 | 353,626 | 291,607 |
| Receivables | US$ in thousands | 160,934 | 144,088 | 122,653 | 108,645 | 116,737 | 91,822 | 87,326 | 117,721 | 115,766 | 96,235 | 99,629 | 91,327 | 82,261 | 99,350 | 68,498 | 82,592 | 60,452 | 65,774 | 66,952 | 52,124 |
| 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 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $576,429K ÷ $160,934K
= 3.58
The receivables turnover ratio measures how efficiently a company is collecting payments from its customers. A higher turnover ratio indicates that the company is collecting revenue more quickly, which is generally a positive sign.
For Universal Display Corp., the receivables turnover has fluctuated over the past eight quarters. In Q4 2023, the receivables turnover was 4.12, which was lower than the previous quarter at 4.81. This suggests that the company took longer to collect payments from its customers in Q4 2023 compared to Q3 2023.
Looking at the trend over the past year, Universal Display Corp. experienced a decline in receivables turnover from Q1 2022 to Q4 2022, where it reached a low of 5.43. However, the turnover ratio then increased steadily from Q1 2023 to Q3 2023, peaking at 6.44.
Overall, it appears that Universal Display Corp. has been effective in collecting receivables from its customers, with turnover ratios consistently above 4. The fluctuations in the ratios may be influenced by various factors such as sales volume, credit policies, and customer payment behavior. Keeping an eye on this trend can help assess the company's ability to manage its accounts receivable effectively.
Peer comparison
Dec 31, 2023