Lattice Semiconductor Corporation (LSCC)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	739,195	656,210	512,589	404,418	390,127
Property, plant and equipment	US$ in thousands	49,546	47,614	38,094	39,666	39,230
Fixed asset turnover		14.92	13.78	13.46	10.20	9.94

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $739,195K ÷ $49,546K
= 14.92

The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is using its fixed assets more effectively to generate sales.

Looking at the trend for Lattice Semiconductor Corporation over the past five years, we see a consistent increase in the fixed asset turnover ratio, which is a positive sign. This improvement suggests that the company has been able to boost its revenue relative to its investment in fixed assets.

In 2019, the fixed asset turnover ratio was 9.94, which means that the company generated $9.94 in sales for every dollar invested in fixed assets. Over the subsequent years, this ratio increased steadily to reach 14.92 in 2023. This significant improvement indicates that the company has become more efficient in utilizing its fixed assets to drive revenue generation.

Overall, the increasing trend in Lattice Semiconductor Corporation's fixed asset turnover ratio reflects the company's ability to enhance operational efficiency and effectively leverage its fixed assets to drive revenue growth. This trend is a positive indicator of the company's financial performance and management of its asset base.