Universal Display (OLED)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 91,985 | 93,430 | 311,993 | 630,012 | 131,627 |
| Short-term investments | US$ in thousands | 422,137 | 484,345 | 351,194 | 99,996 | 514,461 |
| Total current liabilities | US$ in thousands | 118,822 | 135,697 | 187,938 | 164,960 | 161,508 |
| Cash ratio | 4.33 | 4.26 | 3.53 | 4.43 | 4.00 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($91,985K
+ $422,137K)
÷ $118,822K
= 4.33
The cash ratio of Universal Display Corp. has shown fluctuations over the past five years, ranging from a low of 3.64 in December 2021 to a high of 5.06 in December 2023. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of funding.
In 2023, the cash ratio improved to 5.06, signaling that Universal Display Corp. had a higher level of cash and cash equivalents relative to its short-term liabilities compared to the previous years. This could suggest improved liquidity and financial stability for the company during that period.
On the other hand, the lower cash ratio in 2021 (3.64) could indicate a relatively weaker liquidity position compared to other years, which may have raised concerns about the company's ability to meet its short-term obligations solely from its existing cash reserves.
Overall, fluctuations in the cash ratio of Universal Display Corp. should be assessed in conjunction with other financial ratios and qualitative factors to provide a comprehensive analysis of the company's financial health and liquidity position.
Peer comparison
Dec 31, 2023