Universal Display (OLED)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 98,980 | 91,985 | 93,430 | 311,993 | 630,012 |
| Short-term investments | US$ in thousands | 393,690 | 422,137 | 484,345 | 351,194 | 99,996 |
| Total current liabilities | US$ in thousands | 125,410 | 118,822 | 135,697 | 187,938 | 164,960 |
| Cash ratio | 3.93 | 4.33 | 4.26 | 3.53 | 4.43 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($98,980K
+ $393,690K)
÷ $125,410K
= 3.93
The cash ratio for Universal Display over the past five years has shown some fluctuation. Starting at 4.43 in December 2020, the ratio decreased to 3.53 by December 2021, indicating a decrease in the company's ability to cover its short-term liabilities with its cash and cash equivalents. However, the ratio improved in the following years, reaching 4.26 in 2022, 4.33 in 2023, and 3.93 in 2024.
Overall, the cash ratio for Universal Display demonstrates that the company has maintained a relatively healthy level of cash reserves compared to its current liabilities over the period analyzed. However, the decreasing trend observed in 2021 and 2024 may suggest a temporary strain on the company's liquidity position during those years. It is important for stakeholders to monitor this ratio over time to ensure that the company can effectively meet its short-term financial obligations.
Peer comparison
Dec 31, 2024