Universal Display (OLED)
Working capital 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 |
| Total current assets | US$ in thousands | 917,132 | 899,450 | 925,934 | 924,606 | 792,439 |
| Total current liabilities | US$ in thousands | 118,822 | 135,697 | 187,938 | 164,960 | 161,508 |
| Working capital turnover | 0.72 | 0.81 | 0.75 | 0.56 | 0.64 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $576,429K ÷ ($917,132K – $118,822K)
= 0.72
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. The trend of Universal Display Corp.'s working capital turnover over the past five years shows fluctuations in efficiency.
In 2023, the working capital turnover ratio decreased to 0.72 from 0.81 in 2022, indicating a slight decrease in the efficiency of Universal Display Corp in utilizing its working capital to generate sales. This could imply that the company may not be efficiently managing its current assets and liabilities to support its revenue generation.
Comparing 2023 to 2021, there was a minor improvement as the ratio increased to 0.72 from 0.75. However, the efficiency remains lower than in 2021, reflecting a potential area for improvement in managing working capital.
In 2020, the working capital turnover ratio was at its lowest at 0.56, suggesting a decrease in the efficiency of Universal Display Corp in utilizing its working capital effectively. The slight increase in 2023 compared to 2020 indicates a positive trend.
In 2019, the ratio was higher at 0.64, indicating better efficiency in utilizing working capital compared to 2023. Overall, Universal Display Corp. has shown varying levels of efficiency in utilizing its working capital over the years, with potential room for improvement in managing current assets and liabilities to support revenue generation.
Peer comparison
Dec 31, 2023