Lattice Semiconductor Corporation (LSCC)

Short-term

Turnover ratios

Activity ratios provide insights into how efficiently a company is managing its assets and liabilities to generate sales. Let's analyze the activity ratios of Lattice Semiconductor Corporation based on the provided data:

1. Inventory Turnover:
- Inventory turnover measures how efficiently a company is managing its inventory. Lattice Semiconductor's inventory turnover has fluctuated over the years, from 2.52 in 2020 to 1.63 in 2024. A higher turnover ratio indicates that the company is selling its inventory quickly, which is generally favorable. The decrease in the inventory turnover ratio in 2024 may suggest that the company is holding onto its inventory for a longer period, which could tie up capital.

2. Receivables Turnover:
- Unfortunately, the data does not provide information on Lattice Semiconductor's receivables turnover. This ratio helps in assessing how quickly the company is collecting its accounts receivable from customers. A higher turnover ratio indicates a shorter collection period, which is positive for cash flow and liquidity.

3. Payables Turnover:
- Similarly, there is no data available for Lattice Semiconductor's payables turnover ratio. This ratio evaluates how efficiently the company is managing its payments to suppliers. A higher turnover ratio typically indicates that the company is paying its suppliers quickly, which can help maintain good relationships and potentially negotiate better terms.

4. Working Capital Turnover:
- The working capital turnover ratio shows how effectively a company is utilizing its working capital to generate revenue. Lattice Semiconductor's working capital turnover has been relatively stable over the years, ranging from 1.61 in 2020 to 2.72 in 2023. A higher turnover ratio suggests that the company is effectively using its current assets to drive sales, indicating good operational efficiency.

In conclusion, an analysis of Lattice Semiconductor Corporation's activity ratios reveals varying levels of efficiency in managing inventory and working capital over the years. The lack of data for receivables and payables turnover ratios limits a comprehensive assessment of the company's overall liquidity and operational efficiency.

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Average number of days

Based on the provided data for Lattice Semiconductor Corporation, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- December 31, 2020: 144.82 days
- December 31, 2021: 127.40 days
- December 31, 2022: 193.40 days
- December 31, 2023: 162.13 days
- December 31, 2024: 223.34 days

The DOH ratio indicates how many days it takes for the company to sell its inventory. A decrease in this ratio over time is generally positive as it suggests that the company is more efficient in managing its inventory.

2. Days of Sales Outstanding (DSO):
- December 31, 2020: Not provided
- December 31, 2021: Not provided
- December 31, 2022: Not provided
- December 31, 2023: Not provided
- December 31, 2024: Not provided

Unfortunately, the data for Days of Sales Outstanding is not available. DSO measures how long it takes for a company to collect cash from its credit sales. Typically, a lower DSO is preferable as it indicates faster collection of accounts receivable.

3. Number of Days of Payables:
- December 31, 2020: Not provided
- December 31, 2021: Not provided
- December 31, 2022: Not provided
- December 31, 2023: Not provided
- December 31, 2024: Not provided

The data for the Number of Days of Payables is also not available. This ratio shows how long it takes a company to pay off its suppliers. A longer period indicates the company is taking longer to pay its bills, which can sometimes be beneficial for managing cash flow.

Overall, based on the available information, Lattice Semiconductor Corporation appears to have improved its inventory turnover efficiency (DOH ratio decrease), but a lack of data for DSO and payables hinders a more comprehensive analysis of its overall activity and cash conversion cycle.

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Long-term

The Fixed Asset Turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue. A higher ratio indicates better asset utilization. For Lattice Semiconductor Corporation, the Fixed Asset Turnover ratio fluctuated over the years, decreasing from 10.29 in 2020 to 8.32 in 2021, then showing a significant increase to 13.87 in 2022. However, data for 2023 and 2024 are not available.

The Total Asset Turnover ratio reflects the company's efficiency in generating sales revenue from all of its assets. An increasing ratio suggests improved asset utilization. Lattice Semiconductor Corporation's Total Asset Turnover ratio saw an upward trend from 0.60 in 2020 to 0.83 in 2022, indicating better efficiency in utilizing its total assets to generate sales revenue. The ratio reached its peak at 0.88 in 2023 before declining slightly to 0.60 in 2024.

In interpreting these ratios, it can be noted that the company experienced fluctuations in its Fixed Asset Turnover ratio, with a notable increase in 2022. Meanwhile, the Total Asset Turnover ratio displayed improvement over the years, peaking in 2023 before declining in 2024. These ratios highlight Lattice Semiconductor Corporation's varying levels of efficiency in generating revenue from its fixed and total assets over the analyzed period.