Universal Display (OLED)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 175,265 | 240,011 | 221,463 | 234,725 | 217,221 | 235,558 | 255,517 | 250,183 | 267,065 | 240,444 | 229,698 | 226,278 | 227,586 | 236,903 | 227,659 | 176,578 | 157,526 | 126,236 | 118,640 | 168,489 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 10.84% | 15.13% | 14.50% | 15.81% | 15.01% | 17.04% | 19.09% | 19.25% | 20.94% | 19.84% | 19.71% | 20.00% | 20.69% | 22.86% | 22.96% | 18.54% | 17.26% | 14.35% | 14.13% | 19.90% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $175,265K ÷ ($—K + $1,616,520K)
= 10.84%
Universal Display's return on total capital has exhibited some fluctuations over the period under review. The ratio ranged from a low of 10.84% at the end of December 2024 to a high of 22.96% at the end of June 2021. Overall, the trend demonstrates some stability, with the ratio generally staying within a moderate range between 10.84% and 22.96%.
It is worth noting that the return on total capital peaked in the middle of the period, with figures above 20% for several quarters. This could indicate efficient utilization of both debt and equity in generating returns for the company's capital providers. However, there was a downward trend in the latter part of the period, with the ratio gradually decreasing.
The return on total capital metric is a key indicator of how effectively the company is using its capital to generate profits. It reflects the company's ability to generate returns for all its providers of capital, including both debt and equity holders. The fluctuations observed in this ratio suggest that Universal Display's efficiency in utilizing its total capital has varied over the period, potentially impacted by changes in operational performance, capital structure, or economic conditions.
Peer comparison
Dec 31, 2024