Lattice Semiconductor Corporation (LSCC)

Payables 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
Payables US$ in thousands 34,487 36,887 41,264 40,843 42,036 43,635 39,336 38,491 34,597 36,323 34,480 27,384 27,530 40,113 48,759 44,440 44,350 29,644 34,263 33,414
Payables turnover 9.64 8.87 7.82 7.72 8.09 7.70 6.30 6.11 6.53 11.29 13.05 16.08 15.80 5.92 5.40 5.92 5.93 7.92 6.17 5.93

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $332,440K ÷ $34,487K
= 9.64

The payables turnover ratio measures how efficiently a company is managing its accounts payable by determining how many times a company pays off its average accounts payable balance in a specific period.

Analyzing Lattice Semiconductor Corporation's payables turnover over the past few quarters reveals fluctuating trends. The payables turnover ratio ranged from a low of 5.40 in September 2020 to a high of 16.08 in June 2021, indicating significant variability in managing accounts payable during this period.

A higher payables turnover ratio generally signifies that the company is paying off its suppliers more frequently, which can reflect strong liquidity or potentially strained relationships with suppliers. Conversely, a lower ratio may indicate that the company is taking longer to pay its suppliers, potentially preserving cash or stretching payment terms.

It is crucial to consider industry norms and specific business operations to interpret the significance of these fluctuations accurately. Moreover, trends in payables turnover should be analyzed in conjunction with other financial ratios and performance metrics to gain a comprehensive understanding of Lattice Semiconductor Corporation's financial management and operational efficiency.