Lattice Semiconductor Corporation (LSCC)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	332,440	327,122	322,792	315,476	340,227	336,102	247,777	235,117	225,856	410,147	450,057	440,362	435,062	237,515	263,290	263,047	263,112	234,638	211,247	198,294
Inventory	US$ in thousands	98,826	104,019	111,490	117,079	110,375	93,964	77,478	71,773	67,594	66,105	65,584	59,456	64,599	59,488	54,061	48,932	54,980	59,672	64,964	66,773
Inventory turnover		3.36	3.14	2.90	2.69	3.08	3.58	3.20	3.28	3.34	6.20	6.86	7.41	6.73	3.99	4.87	5.38	4.79	3.93	3.25	2.97

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $332,440K ÷ $98,826K
= 3.36

Lattice Semiconductor Corporation's inventory turnover has fluctuated over the past two years. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating the number of times inventory is sold and replaced within a specific period.

The trend in Lattice Semiconductor's inventory turnover shows some variability. From December 2019 to March 2021, the ratio remained relatively stable, ranging from 2.97 to 3.99, which indicates the company was turning over its inventory between approximately 3 to 4 times per year during that period.

However, starting from June 2021, there was a significant increase in the inventory turnover ratio, reaching a peak in June 2021 with a ratio of 7.41, which suggests the company was managing its inventory exceptionally well, turning it over more than 7 times in that year.

Subsequently, from June 2021 to March 2023, the inventory turnover ratio gradually decreased, indicating a slowdown in inventory turnover efficiency. By March 2023, the ratio had decreased to 2.69, showing that the company was turning over its inventory around 2.7 times within that year.

Overall, Lattice Semiconductor Corporation should carefully monitor its inventory turnover ratio and take appropriate measures to improve efficiency in managing its inventory levels to ensure it is achieving optimal turnover rates and minimizing carrying costs.