Universal Display (OLED)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 647,684 | 576,429 | 616,619 | 553,525 | 428,867 |
| Total current assets | US$ in thousands | 899,831 | 917,132 | 899,450 | 925,934 | 924,606 |
| Total current liabilities | US$ in thousands | 125,410 | 118,822 | 135,697 | 187,938 | 164,960 |
| Working capital turnover | 0.84 | 0.72 | 0.81 | 0.75 | 0.56 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $647,684K ÷ ($899,831K – $125,410K)
= 0.84
The working capital turnover of Universal Display has shown an improving trend over the past five years. It increased from 0.56 in December 31, 2020, to 0.84 in December 31, 2024, indicating that the company is managing its working capital more efficiently to generate sales. This suggests that Universal Display has been able to convert its working capital into sales at a faster rate over the years, which is a positive sign for the company's operational efficiency. However, the working capital turnover experienced a slight decrease in 2023 compared to the previous year, which may warrant further investigation into the company's liquidity management strategies during that period. Overall, the improving trend in working capital turnover reflects positively on Universal Display's ability to efficiently utilize its current assets to drive revenue growth.
Peer comparison
Dec 31, 2024