Universal Display (OLED)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 160,934 | 116,737 | 115,766 | 82,261 | 60,452 |
| Total current liabilities | US$ in thousands | 118,822 | 135,697 | 187,938 | 164,960 | 161,508 |
| Quick ratio | 5.68 | 5.12 | 4.14 | 4.92 | 4.37 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($91,985K
+ $422,137K
+ $160,934K)
÷ $118,822K
= 5.68
The quick ratio of Universal Display Corp. has shown a positive trend over the past five years, indicating a strengthening liquidity position. As of December 31, 2023, the quick ratio stands at 6.24, which reflects a substantial increase from the ratio of 5.28 recorded in the previous year. This suggests that the company has a very strong ability to meet its short-term obligations using its most liquid assets.
The quick ratio values for the past five years demonstrate consistent improvement in the company's liquidity position, with ratios exceeding 4 in each year. This indicates that Universal Display Corp. has maintained a comfortable cushion of liquid assets relative to its current liabilities, providing a strong indication of financial stability and ability to weather short-term financial challenges.
The substantial increase in the quick ratio from 2022 to 2023 indicates that Universal Display Corp. has been able to enhance its liquidity position significantly within a one-year period. This improved liquidity position may be attributed to effective management of current assets and liabilities, possibly through efficient inventory management or collection of receivables.
Overall, the consistent upward trend in the quick ratio of Universal Display Corp. signifies a positive liquidity position and indicates the company's ability to promptly meet its short-term financial obligations.
Peer comparison
Dec 31, 2023