Universal Display (OLED)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 647,684 | 643,711 | 623,161 | 611,221 | 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 |
| Total current assets | US$ in thousands | 899,831 | 941,846 | 959,481 | 921,272 | 917,132 | 878,715 | 878,147 | 950,221 | 899,450 | 977,193 | 932,157 | 959,786 | 925,934 | 1,055,140 | 992,892 | 959,335 | 924,606 | 886,154 | 830,159 | 812,071 |
| Total current liabilities | US$ in thousands | 125,410 | 131,165 | 151,999 | 94,979 | 118,822 | 131,343 | 80,732 | 114,957 | 135,697 | 138,199 | 155,213 | 178,254 | 187,938 | 180,261 | 162,563 | 166,332 | 164,960 | 182,760 | 162,695 | 136,554 |
| Working capital turnover | 0.84 | 0.79 | 0.77 | 0.74 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $647,684K ÷ ($899,831K – $125,410K)
= 0.84
The working capital turnover ratio for Universal Display has shown fluctuations over the past few years. It was relatively low at around 0.55 to 0.64 in the first half of 2020, indicating slower utilization of working capital to generate sales. However, there was a gradual improvement in the ratio by the end of 2020, reaching around 0.56 to 0.57.
In the following years, the working capital turnover further increased, ranging from 0.63 to 0.81 by the end of 2022, suggesting better efficiency in using working capital to support revenue generation. Although there were slight fluctuations in the ratio in the subsequent periods, it generally remained elevated, with values around 0.71 to 0.84 by the end of 2024.
Overall, the trend in the working capital turnover ratio for Universal Display indicates a positive improvement in the management of working capital to support the company's sales activities and operational efficiency over the analyzed period.
Peer comparison
Dec 31, 2024