Universal Display (OLED)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 98,980 | 79,559 | 92,856 | 74,012 | 91,985 | 79,323 | 93,470 | 158,294 | 93,430 | 187,750 | 213,896 | 357,424 | 311,993 | 535,157 | 542,914 | 726,279 | 630,012 | 162,620 | 133,566 | 222,744 |
| Short-term investments | US$ in thousands | 393,690 | 471,993 | 437,667 | 465,293 | 422,137 | 412,350 | 465,679 | 487,812 | 484,345 | 501,051 | 439,449 | 325,055 | 351,194 | 253,786 | 190,540 | 720 | 99,996 | 510,048 | 510,455 | 417,032 |
| 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 |
| Cash ratio | 3.93 | 4.21 | 3.49 | 5.68 | 4.33 | 3.74 | 6.93 | 5.62 | 4.26 | 4.98 | 4.21 | 3.83 | 3.53 | 4.38 | 4.51 | 4.37 | 4.43 | 3.68 | 3.96 | 4.69 |
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 of Universal Display, as indicated in the provided data, has shown fluctuations over the reporting periods. The cash ratio represents the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio signifies a greater ability to cover liabilities.
From March 31, 2020, to June 30, 2020, the cash ratio decreased from 4.69 to 3.96, indicating a slight decrease in the company's liquidity position. However, the ratio increased in the subsequent quarter to 4.43 as of December 31, 2020, showing an improvement in liquidity.
The ratio continued to fluctuate throughout the following quarters, reaching its peak at 6.93 on June 30, 2023, suggesting a strong ability to cover short-term liabilities with cash on hand. However, this high was followed by a significant drop to 3.74 by September 30, 2023, indicating a potential liquidity challenge during that period.
Overall, the cash ratio of Universal Display has displayed variability, with some quarters showing stronger liquidity positions than others. It is essential for investors and analysts to monitor these fluctuations to assess the company's ability to meet its short-term obligations using its available cash resources.
Peer comparison
Dec 31, 2024