Universal Display (OLED)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 7.72 | 6.69 | 10.88 | 8.27 | 6.63 | 7.07 | 6.01 | 5.38 | 4.93 | 5.85 | 6.11 | 5.77 | 5.61 | 4.85 | 5.10 | 5.95 | 4.91 | 4.93 | 4.93 | 4.96 |
| Quick ratio | 5.68 | 4.84 | 8.45 | 6.57 | 5.12 | 5.65 | 4.77 | 4.49 | 4.14 | 4.91 | 5.12 | 4.92 | 4.92 | 4.22 | 4.38 | 5.29 | 4.37 | 4.47 | 4.43 | 4.40 |
| Cash ratio | 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 | 4.00 | 4.02 | 3.96 | 4.00 |
Universal Display Corp. has exhibited stable liquidity ratios over the past eight quarters. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has generally been healthy, ranging from 5.38 to 10.88. This indicates that the company has been maintaining a comfortable cushion of current assets to cover its current liabilities.
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Universal Display Corp.'s quick ratio has also been consistently strong, ranging from 4.58 to 8.70. This suggests that the company has a sufficient level of liquid assets to meet its short-term obligations without relying on inventory sales.
Furthermore, the cash ratio, which represents the most stringent liquidity measure by considering only cash and cash equivalents to current liabilities, has shown a similar trend. Universal Display Corp.'s cash ratio has ranged from 3.99 to 7.34, indicating that the company has maintained a solid level of cash reserves relative to its current liabilities.
Overall, the liquidity ratios of Universal Display Corp. demonstrate a stable and robust financial position in terms of its ability to meet short-term obligations. This suggests that the company has adequate liquidity to fund its operations and withstand any potential short-term financial challenges.
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 546.40 | 542.90 | 537.68 | 536.65 | 564.82 | 524.72 | 501.00 | 415.01 | 454.71 | 431.66 | 408.33 | 440.52 | 402.18 | 447.69 | 451.74 | 353.63 | 299.77 | 299.00 | 326.37 | 425.05 |
The cash conversion cycle for Universal Display Corp. has shown some variability over the past eight quarters. In Q4 2023, the cash conversion cycle was 533.05 days, increasing from the previous quarter's 529.29 days. This metric measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
The overall trend indicates that the company's cash conversion cycle has generally been on the rise since Q2 2022 when it was at 406.83 days. This increase suggests that Universal Display Corp. may be taking longer to sell its products and collect cash from customers, possibly indicating potential inefficiencies in its operations or changes in its sales and collection processes.
It is crucial for the company to monitor and manage its cash conversion cycle effectively to ensure optimal working capital management. A longer cash conversion cycle can tie up valuable resources and negatively impact liquidity and overall financial health. Universal Display Corp. may need to evaluate its supply chain, inventory management, and credit policies to streamline processes and reduce the cash conversion cycle to improve its financial performance.