Universal Display (OLED)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 407.06 | 394.73 | 400.95 | 433.53 | 473.98 | 511.48 | 484.05 | 498.03 | 522.89 | 505.77 | 487.06 | 418.74 | 425.85 | 404.04 | 375.81 | 428.87 | 391.10 | 400.30 | 437.04 | 329.62 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 407.06 | 394.73 | 400.95 | 433.53 | 473.98 | 511.48 | 484.05 | 498.03 | 522.89 | 505.77 | 487.06 | 418.74 | 425.85 | 404.04 | 375.81 | 428.87 | 391.10 | 400.30 | 437.04 | 329.62 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 407.06 + — – —
= 407.06
The cash conversion cycle of Universal Display, a key metric that reflects how long it takes for the company to convert its investments in inventory and other resources into cash flows from sales, has shown fluctuations over the past few years.
From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from a low of 329.62 days to a high of 522.89 days. This indicates that Universal Display's efficiency in managing its working capital and completing the cash conversion process has varied significantly during this period.
A higher cash conversion cycle implies that the company takes longer to collect cash from its sales, potentially signaling inefficiencies in managing inventory, accounts receivable, and accounts payable. On the other hand, a lower cycle indicates a more efficient cash conversion process and better working capital management.
During the analyzed period, fluctuations in the cash conversion cycle occurred, suggesting possible changes in Universal Display's inventory management, sales processes, and payment terms with suppliers and customers. It is important for the company to closely monitor and optimize its cash conversion cycle to enhance liquidity, maximize cash flow efficiency, and improve overall financial performance.
Peer comparison
Dec 31, 2024