Universal Display (OLED)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 203,011 | 210,061 | 184,213 | 133,372 | 138,304 |
| Total stockholders’ equity | US$ in thousands | 1,447,230 | 1,275,370 | 1,099,910 | 912,714 | 811,449 |
| ROE | 14.03% | 16.47% | 16.75% | 14.61% | 17.04% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $203,011K ÷ $1,447,230K
= 14.03%
Universal Display Corp.'s Return on Equity (ROE) has shown a decreasing trend over the past five years, declining from 16.91% in 2019 to 13.96% in 2023. This indicates that the company's ability to generate profits from shareholders' equity has weakened over this period. Despite the fluctuations, Universal Display Corp.'s ROE has remained relatively stable within the range of 13.96% to 16.91%.
While a higher ROE is generally preferred as it signifies efficient utilization of equity capital, it is important to consider the industry benchmarks and the company's specific circumstances for a more insightful analysis. Further investigation into the factors influencing the ROE trend, such as changes in profitability, asset utilization, and financial leverage, would provide a deeper understanding of Universal Display Corp.'s performance and prospects for future growth.
Peer comparison
Dec 31, 2023