Lattice Semiconductor Corporation (LSCC)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	366,188	334,593	301,380	266,655	267,467
Payables	US$ in thousands	34,487	42,036	34,597	27,530	44,350
Payables turnover		10.62	7.96	8.71	9.69	6.03

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $366,188K ÷ $34,487K
= 10.62

Lattice Semiconductor Corporation's payables turnover has shown an increasing trend from 2019 to 2020 before experiencing a slight dip in 2021. However, the ratio significantly improved in 2022 and 2023.

A high payables turnover ratio indicates that the company is paying its suppliers more frequently within a given period, which may suggest efficient cash management and good relationships with suppliers. Lattice Semiconductor's payables turnover ratio of 10.62 in 2023 signifies that the company is able to convert its accounts payable into cash more than 10 times during the year.

This may imply that Lattice Semiconductor is effectively managing its payables and possibly negotiating favorable credit terms with its suppliers. It is important to note that a very high payables turnover ratio could also indicate excessively aggressive payment practices, potentially straining relationships with suppliers.

Overall, the increasing trend in Lattice Semiconductor's payables turnover ratio reflects positively on the company's ability to manage its payables efficiently and optimize its working capital.