Universal Display (OLED)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 77.08% | 76.51% | 79.26% | 79.23% | 80.07% |
| Operating profit margin | 36.87% | 37.68% | 43.32% | 41.13% | 36.73% |
| Pretax margin | 42.02% | 42.53% | 43.50% | 41.24% | 38.13% |
| Net profit margin | 34.29% | 35.22% | 34.07% | 33.28% | 31.10% |
Universal Display has exhibited strong profitability over the years as indicated by its gross profit margin, operating profit margin, pretax margin, and net profit margin.
The gross profit margin has been relatively stable, ranging from 76.51% in December 2023 to 80.07% in December 2020. This metric reflects the efficiency of the company in managing its production costs and generating revenue.
The operating profit margin has shown an increasing trend, from 36.73% in December 2020 to 43.32% in December 2022, before slightly decreasing to 36.87% in December 2024. This indicates the company's ability to control its operating expenses and generate profits from its core operations.
Similarly, the pretax margin has also displayed a positive trend, reaching its peak at 43.50% in December 2022. This reflects Universal Display's efficient management of its expenses before accounting for taxes.
The net profit margin, which indicates the company's bottom line profitability, has shown consistent performance, ranging from 31.10% in December 2020 to 35.22% in December 2023. It slightly decreased to 34.29% in December 2024, but remained at a favorable level.
Overall, Universal Display's strong profitability ratios suggest effective cost management, operational efficiency, and a solid performance in generating profits over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.03% | 13.01% | 17.43% | 15.52% | 12.41% |
| Return on assets (ROA) | 12.12% | 12.16% | 13.70% | 12.56% | 10.51% |
| Return on total capital | 0.00% | 15.01% | 20.94% | 20.70% | 17.26% |
| Return on equity (ROE) | 13.74% | 14.03% | 16.47% | 16.75% | 14.61% |
Universal Display has shown a consistent improvement in profitability ratios over the years based on the provided data.
1. Operating Return on Assets (Operating ROA) has increased steadily from 12.41% in December 2020 to 17.43% in December 2022, indicating the company's ability to generate operating income relative to its total assets. Although there was a slight dip in 2023 and 2024, the ratio remains relatively strong.
2. Return on Assets (ROA) has also shown a positive trend, increasing from 10.51% in December 2020 to 13.70% in December 2022. This metric evaluates the company's overall profitability in generating earnings from its assets.
3. Return on Total Capital peaked at 20.94% in December 2022, indicating the company's efficiency in generating returns for both equity and debt holders. However, there was a substantial decline to 0.00% in December 2024, suggesting a potential issue or change in the capital structure.
4. Return on Equity (ROE) has shown a similar trend to ROA, increasing steadily from 14.61% in December 2020 to 16.47% in December 2022. ROE reflects the company's ability to generate returns for its shareholders, and Universal Display has maintained a relatively stable ROE over the years.
Overall, Universal Display's profitability ratios demonstrate a positive performance, with a focus on efficient asset utilization and strong returns for both shareholders and capital providers. The company's solid profitability metrics indicate effective management of assets and capital to generate value for stakeholders.