Lattice Semiconductor Corporation (LSCC)

Working capital turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Revenue US$ in thousands 739,195 656,210 512,589 404,418 390,127
Total current assets US$ in thousands 367,946 379,167 301,351 333,843 262,430
Total current liabilities US$ in thousands 97,400 127,373 106,181 79,731 99,819
Working capital turnover 2.73 2.61 2.63 1.59 2.40

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $739,195K ÷ ($367,946K – $97,400K)
= 2.73

Lattice Semiconductor Corporation's working capital turnover has exhibited fluctuations over the past five years. The ratio indicates the company's ability to efficiently utilize its working capital to generate sales revenue. A higher working capital turnover ratio generally suggests that the company is effectively managing its working capital to support sales growth.

In 2023, the working capital turnover ratio increased to 2.73 from 2.61 in 2022, indicating an improvement in the company's efficiency in converting its working capital into sales. This may be a positive sign of effective working capital management or improved sales performance compared to the previous year.

Looking back at the trend, the company experienced a significant increase in working capital turnover in 2020 compared to 2019, followed by fluctuations in the subsequent years. The lower ratio in 2021 and the notable increase in 2020 may suggest improved working capital management efficiency during those periods.

Overall, Lattice Semiconductor Corporation's working capital turnover has shown variability over the years, indicating changing efficiencies in utilizing working capital to drive sales. It would be important to monitor future trends in this ratio to assess the company's ongoing operational performance and financial health.