Universal Display (OLED)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 76.51% | 79.26% | 79.23% | 80.07% | 81.40% |
| Operating profit margin | 37.68% | 43.32% | 41.13% | 36.73% | 39.08% |
| Pretax margin | 42.53% | 43.50% | 41.24% | 38.13% | 41.93% |
| Net profit margin | 35.22% | 34.07% | 33.28% | 31.10% | 34.13% |
Universal Display Corp.'s profitability ratios have shown some fluctuations over the past five years. The gross profit margin has been consistently high, ranging from 76.51% to 81.40%, indicating a strong ability to generate revenue after accounting for the cost of goods sold.
The operating profit margin, which indicates the company's efficiency in managing its operating expenses, has also been relatively healthy, ranging from 36.73% to 43.32%. Despite some fluctuations, the company has managed to maintain a solid level of profitability from its core business operations.
The pretax margin, reflecting the company's ability to generate profits before accounting for taxes, has seen some variability, ranging from 38.13% to 43.50%. This suggests that the company's profitability before tax has been somewhat inconsistent over the years.
In terms of net profit margin, which measures the company's bottom line profitability after all expenses are deducted, Universal Display Corp. has maintained a relatively stable performance, with margins ranging from 30.87% to 35.05%. This indicates that the company has been effective in controlling its expenses and generating profits for its shareholders.
Overall, Universal Display Corp. has demonstrated strong profitability over the years, as evidenced by its healthy margins across various levels of the income statement. However, fluctuations in pretax margin suggest potential areas for improvement in terms of managing costs and optimizing revenue streams.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.01% | 17.43% | 15.52% | 12.41% | 14.14% |
| Return on assets (ROA) | 12.16% | 13.70% | 12.56% | 10.51% | 12.35% |
| Return on total capital | 15.01% | 20.94% | 20.68% | 17.26% | 19.51% |
| Return on equity (ROE) | 14.03% | 16.47% | 16.75% | 14.61% | 17.04% |
Universal Display Corp. has shown consistent profitability over the past five years, as evidenced by its profitability ratios.
1. Operating return on assets (Operating ROA) has fluctuated between 12.41% and 17.43% over the period, with the highest value being in 2022. This indicates that the company is efficiently utilizing its assets to generate operating income.
2. Return on assets (ROA) has ranged from 10.43% to 13.62%, with the highest value in 2022. This ratio reflects the company's ability to generate profits from its total assets, showing a positive trend over the years.
3. Return on total capital has varied between 15.01% and 20.94%, peaking in 2022. This metric highlights the company's ability to generate returns for all its capital providers, including both debt and equity holders.
4. Return on equity (ROE) has fluctuated between 13.96% and 16.91% over the period, indicating the company's ability to provide returns to its equity shareholders. The highest value was recorded in 2021.
Overall, Universal Display Corp. has demonstrated strong profitability performance, with the highest values for these ratios generally observed in the more recent years. This indicates efficient asset utilization and effective management of capital to generate returns for both debt and equity investors.