Universal Display (OLED)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 917,132 | 899,450 | 925,934 | 924,606 | 792,439 |
| Total current liabilities | US$ in thousands | 118,822 | 135,697 | 187,938 | 164,960 | 161,508 |
| Current ratio | 7.72 | 6.63 | 4.93 | 5.61 | 4.91 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $917,132K ÷ $118,822K
= 7.72
The current ratio measures Universal Display Corp.'s ability to meet its short-term obligations using its current assets. A higher current ratio indicates the company has more current assets relative to its current liabilities, suggesting a stronger liquidity position.
Looking at the trend over the past five years, the company's current ratio has generally been increasing, indicating an improvement in short-term liquidity. The current ratio increased from 4.91 in 2019 to 7.72 in 2023, showing a stronger ability to cover current liabilities with current assets.
The significant increase in the current ratio from 2022 to 2023 (6.63 to 7.72) suggests that Universal Display Corp. has managed its current assets more effectively, potentially by increasing cash reserves or reducing current liabilities.
Overall, the upward trend in the current ratio implies that the company is in a better position to meet its short-term obligations as of the most recent year, indicating improved liquidity and financial stability.
Peer comparison
Dec 31, 2023