Universal Display (OLED)
Interest coverage
| 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 |
| Interest expense (ttm) | US$ in thousands | 0 | 6,264 | 6,264 | 6,264 | 12,528 | 9,769 | 12,201 | 13,784 | 7,811 | 4,466 | 2,034 | 451 | 160 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest coverage | — | 38.32 | 35.35 | 37.47 | 17.34 | 24.11 | 20.94 | 18.15 | 34.19 | 53.84 | 112.93 | 501.73 | 1,422.41 | — | — | — | — | — | — | — |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $175,265K ÷ $0K
= —
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. Universal Display's interest coverage ratio was not available for the period ending December 31, 2020, which indicates insufficient data for analysis.
Starting from March 31, 2021, the interest coverage ratio was 1,422.41, indicating that the company generated significant earnings compared to its interest expenses, reflecting a strong ability to cover interest payments.
Subsequently, the interest coverage ratio declined gradually over the following quarters, reaching its lowest point of 18.15 as of March 31, 2023. This decrease suggests a potential increase in the company's interest expenses relative to its earnings during this period.
However, the interest coverage ratio showed some improvement in the later quarters, with values ranging from 20.94 to 38.32 up to December 31, 2024. This trend indicates an enhanced ability to cover interest costs, although it is still important for investors to monitor the ratio to ensure that the company's earnings remain sufficient to meet its interest obligations in the long term.
Peer comparison
Dec 31, 2024