Universal Display (OLED)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 217,189 | 267,110 | 227,644 | 157,526 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,616,520 | 1,447,230 | 1,275,370 | 1,099,910 | 912,714 |
| Return on total capital | 0.00% | 15.01% | 20.94% | 20.70% | 17.26% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,616,520K)
= 0.00%
Universal Display's return on total capital has shown a positive trend from December 31, 2020, to December 31, 2022, increasing from 17.26% to 20.94%. However, there was a slight decline in this metric to 15.01% by December 31, 2023. Notably, by December 31, 2024, the return on total capital dropped to 0.00%, indicating a significant decrease or possibly unsustainable performance. It is essential for Universal Display to assess the factors behind this decline and take necessary steps to improve its return on total capital to ensure sustainable growth and efficiency in capital allocation.
Peer comparison
Dec 31, 2024