Lattice Semiconductor Corporation (LSCC)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.71 | 3.03 | 4.46 | 4.13 | 4.86 |
| Receivables turnover | 7.08 | 6.98 | 6.42 | 6.26 | 6.01 |
| Payables turnover | 10.62 | 7.96 | 8.71 | 9.69 | 6.03 |
| Working capital turnover | 2.73 | 2.61 | 2.63 | 1.59 | 2.40 |
Inventory Turnover:
Lattice Semiconductor Corporation's inventory turnover has been fluctuating over the past five years, ranging from 3.03 to 4.86. The trend indicates that the company is efficiently managing its inventory levels, with a higher turnover ratio generally indicating better inventory management. However, the decrease in 2023 compared to the previous year might signify a slight slowdown in sales or a change in inventory management strategies.
Receivables Turnover:
The receivables turnover ratio for Lattice Semiconductor Corporation has remained relatively stable around 6 to 7 over the past five years. This demonstrates that the company is collecting its accounts receivable efficiently, with a higher turnover indicating a quicker conversion of credit sales into cash. The consistency in this ratio suggests that the company has been effective in managing its credit and collection policies.
Payables Turnover:
Lattice Semiconductor Corporation's payables turnover has shown an increasing trend over the five-year period, reaching 10.62 in 2023. This indicates that the company is taking longer to pay its suppliers, which could potentially improve its cash flow by delaying payments. However, it is essential to ensure that this does not strain supplier relationships or lead to unfavorable credit terms in the future.
Working Capital Turnover:
The working capital turnover ratio for Lattice Semiconductor Corporation has varied over the years, with a noticeable increase in 2023 compared to 2022. A higher turnover ratio indicates that the company is generating sales more efficiently using its working capital. This improvement in 2023 could suggest that the company has optimized its working capital management, potentially through more effective use of current assets to drive revenues.
Overall, Lattice Semiconductor Corporation's activity ratios indicate that the company has been effectively managing its inventory, accounts receivable, accounts payable, and working capital to support its operational efficiency and financial performance.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 98.51 | 120.41 | 81.86 | 88.42 | 75.03 |
| Days of sales outstanding (DSO) | days | 51.54 | 52.30 | 56.87 | 58.29 | 60.74 |
| Number of days of payables | days | 34.38 | 45.86 | 41.90 | 37.68 | 60.52 |
To analyze the activity ratios of Lattice Semiconductor Corporation, we will look at the Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.
1. Days of Inventory on Hand (DOH):
- The trend in DOH indicates the number of days it takes for Lattice Semiconductor Corporation to sell its inventory. A decreasing trend in DOH from 2022 to 2021 suggests the company managed its inventory more efficiently. However, there was an increase in 2022 and 2023, which may indicate potential issues with inventory management or slowing sales.
2. Days of Sales Outstanding (DSO):
- DSO represents the average number of days it takes for Lattice Semiconductor Corporation to collect its accounts receivable. A decreasing trend in DSO from 2019 to 2023 is positive, indicating the company is collecting receivables more quickly. This suggests effective credit management and shorter collection cycles over the years.
3. Number of Days of Payables:
- The Number of Days of Payables shows how long it takes for Lattice Semiconductor Corporation to pay its suppliers. The decreasing trend from 2019 to 2023 indicates the company is taking longer to settle its payables, which could be beneficial for cash flow management.
In conclusion, while Lattice Semiconductor Corporation has shown improvements in managing its receivables and payables over the years, the increase in Days of Inventory on Hand in 2022 and 2023 indicates potential challenges in inventory management that may require attention to optimize working capital efficiency.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 14.92 | 13.78 | 13.46 | 10.20 | 9.94 |
| Total asset turnover | 0.88 | 0.82 | 0.71 | 0.59 | 0.64 |
Lattice Semiconductor Corporation has shown consistent improvement in its efficiency in utilizing its fixed assets over the years as indicated by its increasing fixed asset turnover ratio. The company's fixed asset turnover ratio has increased from 9.94 in 2019 to 14.92 in 2023, demonstrating that it generated $14.92 of sales for every dollar invested in fixed assets in 2023. This indicates a positive trend in the company's ability to generate revenue from its fixed assets.
Furthermore, Lattice Semiconductor Corporation's total asset turnover ratio has also seen a steady upward trend, increasing from 0.64 in 2019 to 0.88 in 2023. This signifies that the company has become more efficient in generating sales from its total assets over the years. In 2023, the company generated $0.88 in sales for every dollar of total assets it held.
Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios reflects Lattice Semiconductor Corporation's improving efficiency in managing its assets to generate sales, which is a positive indicator of the company's operational performance and effectiveness.