Universal Display (OLED)
Working capital 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 |
| Total current assets | US$ in thousands | 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 | 792,439 | 731,016 | 688,694 | 652,172 |
| Total current liabilities | US$ in thousands | 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 | 161,508 | 148,392 | 139,736 | 131,574 |
| Working capital turnover | 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 | 0.64 | 0.64 | 0.64 | 0.56 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $576,429K ÷ ($917,132K – $118,822K)
= 0.72
The working capital turnover ratio measures the efficiency with which a company utilizes its working capital to generate revenue. A higher ratio indicates more efficient use of working capital.
Universal Display Corp.'s working capital turnover has varied over the last eight quarters, ranging from 0.71 to 0.81. This indicates some fluctuations in the company's ability to generate sales using its working capital efficiently during this period.
The average working capital turnover for Universal Display Corp. over these quarters is approximately 0.75. This suggests that, on average, the company generates revenue equivalent to 0.75 times its working capital investment within a year.
It is important for the company to monitor its working capital turnover ratio consistently. Sustaining or improving this ratio indicates efficient management of working capital, which is crucial for liquidity and overall financial health. fluctuations in this ratio could signal changes in the company's operational efficiency or sales performance.
Peer comparison
Dec 31, 2023