Universal Display (OLED)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,668,960 | 1,622,920 | 1,540,860 | 1,535,710 | 1,532,820 | 1,530,320 | 1,499,440 | 1,487,230 | 1,466,920 | 1,428,590 | 1,350,720 | 1,310,500 | 1,269,230 | 1,224,960 | 1,161,060 | 1,136,380 | 1,120,160 | 1,062,550 | 1,011,080 | 968,190 |
| 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 |
| Financial leverage ratio | 1.15 | 1.17 | 1.15 | 1.18 | 1.20 | 1.26 | 1.29 | 1.31 | 1.33 | 1.38 | 1.36 | 1.38 | 1.39 | 1.39 | 1.38 | 1.34 | 1.38 | 1.35 | 1.35 | 1.35 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,668,960K ÷ $1,447,230K
= 1.15
Universal Display Corp.'s financial leverage ratio has shown a fluctuating trend over the past eight quarters, ranging from 1.15 to 1.31. The ratio indicates the company's level of debt relative to its equity capital. A financial leverage ratio above 1 suggests that the company relies more on debt financing than equity financing to support its operations and growth.
The downward trend observed in the financial leverage ratio from Q4 2022 to Q2 2023 indicates a potential improvement in the company's debt-to-equity structure. However, the ratio increased in Q3 2023 and Q4 2023, suggesting a higher reliance on debt to finance its activities during those periods.
It is essential to further investigate the reasons behind these fluctuations in the financial leverage ratio to assess the company's overall financial health and risk profile. A high financial leverage ratio may indicate increased financial risk and potential challenges in servicing debt obligations, while a lower ratio may suggest a stronger equity position but may limit growth opportunities.
Peer comparison
Dec 31, 2023