Universal Display (OLED)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 222,079 | 238,038 | 222,684 | 220,025 | 203,011 | 206,167 | 207,817 | 199,406 | 209,212 | 189,954 | 182,642 | 181,669 | 183,353 | 190,991 | 185,360 | 145,875 | 132,362 | 105,092 | 101,571 | 143,881 |
| Total stockholders’ equity | US$ in thousands | 1,616,520 | 1,586,750 | 1,526,840 | 1,484,900 | 1,447,230 | 1,382,370 | 1,338,770 | 1,299,460 | 1,275,370 | 1,211,820 | 1,165,310 | 1,131,300 | 1,099,910 | 1,036,320 | 991,616 | 952,468 | 912,714 | 879,636 | 839,770 | 846,697 |
| ROE | 13.74% | 15.00% | 14.58% | 14.82% | 14.03% | 14.91% | 15.52% | 15.35% | 16.40% | 15.68% | 15.67% | 16.06% | 16.67% | 18.43% | 18.69% | 15.32% | 14.50% | 11.95% | 12.10% | 16.99% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $222,079K ÷ $1,616,520K
= 13.74%
Universal Display has demonstrated varying levels of return on equity (ROE) over the past five years. ROE is a key financial ratio that measures a company's profitability by assessing its ability to generate profit from its shareholders' equity.
From March 2020 to December 2020, the company's ROE ranged between 11.95% and 16.99%, showing some fluctuations. However, there was a notable increase in ROE in the subsequent quarters, with ROE reaching a peak of 18.69% in June 2021. This suggests that Universal Display was able to efficiently use its equity to generate higher returns during this period.
Over the following quarters, ROE maintained relatively strong levels, hovering between 15% and 16%. However, there was a slight decline in ROE towards the end of 2024, dropping to 13.74% in December. This decline may indicate a decrease in the company's ability to generate profit from its equity compared to the prior periods.
Overall, Universal Display's ROE performance reflects its ability to effectively utilize shareholder equity to generate profits. Investors and analysts may want to further investigate the factors contributing to the fluctuations in ROE to assess the company's financial health and performance.
Peer comparison
Dec 31, 2024