Lattice Semiconductor Corporation (LSCC)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 7.09 7.01 7.46 — 7.09 — — — 6.42 — — — — — — — — — — —
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
Working capital turnover 2.73 2.85 2.85 2.79 2.65 2.75 2.85 2.74 2.63 1.92 1.74 1.65 1.59 1.59 1.65 1.75 2.41 2.45 2.24 1.86

Lattice Semiconductor Corporation's activity ratios provide insights into the efficiency of the company's operations.

- Inventory turnover has shown some fluctuations over the periods but generally indicates that the company is able to manage its inventory well and convert it into sales. The decrease in inventory turnover from 6.73 in Q1 2021 to 2.69 in Q1 2023 may suggest a change in the company's inventory management strategy.

- Receivables turnover has been relatively stable, indicating that the company efficiently collects on its credit sales. Although there is missing data for Q1 2023, the consistency in the turnover ratio implies effective credit management practices.

- Payables turnover has also been fluctuating, which could be reflective of changes in the company's payment terms with suppliers. The sharp increase in payables turnover from 5.92 in Q1 2020 to 16.08 in Q1 2022 suggests that the company has been extending its payment period to suppliers.

- Working capital turnover has shown variability over the periods. A higher turnover ratio indicates efficient utilization of working capital to generate sales. The increase in working capital turnover from 1.59 in Q1 2020 to 2.85 in Q3 2021 might indicate improved efficiency in utilizing the company's working capital.

Overall, Lattice Semiconductor Corporation's activity ratios provide valuable insights into its operational efficiency and management of key working capital components.

Average number of days

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
Days of inventory on hand (DOH) days 108.51 116.06 126.07 135.46 118.41 102.04 114.13 111.42 109.24 58.83 53.19 49.28 54.20 91.42 74.94 67.90 76.27 92.83 112.25 122.91
Days of sales outstanding (DSO) days 51.50 52.07 48.93 — 51.45 — — — 56.86 — — — — — — — — — — —
Number of days of payables days 37.86 41.16 46.66 47.25 45.10 47.39 57.95 59.75 55.91 32.32 27.96 22.70 23.10 61.64 67.59 61.66 61.52 46.11 59.20 61.51

Lattice Semiconductor Corporation's activity ratios provide insights into the efficiency of its inventory management, accounts receivable collection, and accounts payable payment.

The Days of Inventory on Hand (DOH) increased from 54.20 days in March 2021 to 135.46 days in March 2023, indicating a substantial increase in the average number of days the inventory is held before being sold. This may suggest either overstocking or slower inventory turnover, which could tie up capital and potentially lead to obsolescence.

The Days of Sales Outstanding (DSO) fluctuated between 48.93 days and 56.86 days during the period, reflecting the average number of days it takes to collect revenue after a sale. A decrease in DSO indicates quicker collection of accounts receivable, improving the company's cash flow and liquidity, although some missing data points limit the full assessment of this metric.

The Number of Days of Payables trended upward from 22.70 days in March 2021 to 47.25 days in March 2023, indicating a lengthening of the average time taken to pay suppliers. While a longer payment period can provide some short-term financial flexibility, it may strain relationships with suppliers if not managed effectively.

Overall, Lattice Semiconductor Corporation should focus on optimizing its inventory levels, enhancing accounts receivable collection efficiency, and maintaining a balanced approach to managing its payables to improve its overall working capital management and operational efficiency over time.

Long-term

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
Fixed asset turnover 14.93 14.80 14.28 13.73 14.01 14.01 13.88 13.81 13.46 12.82 11.98 11.09 10.20 10.01 9.87 9.88 9.98 9.64 9.78 10.70
Total asset turnover 0.88 0.95 0.95 0.91 0.84 0.83 0.81 0.76 0.71 0.68 0.65 0.62 0.59 0.58 0.59 0.59 0.64 0.65 0.63 0.61

The fixed asset turnover ratio for Lattice Semiconductor Corporation has shown consistent improvement over the past few years, indicating the company's ability to generate more revenue relative to its investment in fixed assets. This suggests that the company is efficiently utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio has fluctuated over the same period, but generally shows a decreasing trend. This may imply that Lattice Semiconductor Corporation is becoming less efficient in utilizing all its assets (both fixed and current) to generate sales.

Overall, while the company's efficiency in utilizing fixed assets has been improving, there may be a need to focus on optimizing the utilization of all assets to enhance overall operational efficiency and profitability.