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.