Universal Display (OLED)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 217,189 | 267,110 | 227,644 | 157,526 | 158,343 |
| Long-term debt | US$ in thousands | 54 | 54 | 1,023 | 192 | — |
| Total stockholders’ equity | US$ in thousands | 1,447,230 | 1,275,370 | 1,099,910 | 912,714 | 811,449 |
| Return on total capital | 15.01% | 20.94% | 20.68% | 17.26% | 19.51% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $217,189K ÷ ($54K + $1,447,230K)
= 15.01%
Universal Display Corp.'s return on total capital has displayed some fluctuations over the past five years. In 2023, the return on total capital stood at 15.01%, showing a decrease compared to the previous year’s figure of 20.94% in 2022. However, the return in 2023 is still relatively healthy, indicating that the company is generating a decent return on its total capital despite the slight decline.
Comparing the 2023 return on total capital to earlier years, it is lower than the 20.70% achieved in 2021, which was a relatively strong performance year for the company. The returns in 2020 and 2019 were 17.26% and 19.51%, respectively, with 2020 being a lower performance year compared to the others.
Overall, while the 2023 return on total capital has decreased compared to the previous year, it is still above the levels seen in 2020 and 2019. This suggests that Universal Display Corp. continues to effectively utilize its total capital to generate returns for its stakeholders, although potential areas for improvement in capital efficiency may warrant further analysis and attention.
Peer comparison
Dec 31, 2023