Universal Display (OLED)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 217,189 | 235,526 | 255,553 | 250,228 | 267,110 | 240,489 | 229,754 | 226,336 | 227,644 | 236,961 | 227,659 | 176,578 | 157,526 | 126,236 | 118,640 | 168,489 | 158,343 | 139,127 | 124,329 | 86,576 |
| Long-term debt | US$ in thousands | 54 | 54 | 54 | 54 | 54 | 1,222 | 1,150 | 1,089 | 1,023 | — | — | — | 192 | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 811,449 | 786,567 | 751,033 | 716,201 |
| Return on total capital | 15.01% | 17.04% | 19.09% | 19.26% | 20.94% | 19.83% | 19.70% | 19.99% | 20.68% | 22.87% | 22.96% | 18.54% | 17.26% | 14.35% | 14.13% | 19.90% | 19.51% | 17.69% | 16.55% | 12.09% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $217,189K ÷ ($54K + $1,447,230K)
= 15.01%
The return on total capital for Universal Display Corp. has shown a consistent trend of decline over the past 8 quarters. Starting at 20.94% in Q4 2022, it has progressively decreased to 15.01% in Q4 2023. This downward trend suggests that the company may be experiencing challenges in generating profits relative to the total capital employed in its operations. The decrease in return on total capital could be indicative of inefficiencies in capital utilization, declining profitability, or increased capital expenditures without proportional earnings growth. It is important for the company to closely monitor and address the factors contributing to this declining trend to ensure sustainable and efficient use of its capital resources.
Peer comparison
Dec 31, 2023