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Stock impact report

Are Universal Display Corporation’s (NASDAQ:OLED) High Returns Really That Great? [Yahoo! Finance News]

Universal Display Corporation (OLED) 
Last universal display corporation earnings: 2/20 04:08 pm Check Earnings Report
US:NASDAQ Investor Relations: ir.oled.com/shareholders/default.aspx
Today we are going to look at Universal Display Corporation NASDAQ:OLEDFirst up, we'll look at what ROCE is and how we calculate it. Second, we'll look at its ROCE compared to similar companies. Then we'll determine how its current liabilities are affecting its ROCE.Return On Capital Employed ROCE): What is it?ROCE measures the 'return' pre-tax profit) a company generates from capital employed in its business. All else being equal, a better business will have a higher ROCE. Ultimately, it is a useful but imperfect metric. Author Edwin WhitingsaysSo, How Do We Calculate ROCE?Analysts use this formula to calculate return on capital employed:Return on Capital Employed = Earnings Before Interest and Tax EBIT) ÷ Total Assets - Current Liabilities)Or for Universal Display:0.17 = US$158m ÷ US$1.1b - US$162m) Based on the trailing twelve months to December 2019.)Universal Display has an ROCE of 17%.See our latest analysis for Universal DisplayIs Universal Display's ROCE Good?When making compa Show less Read more
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