Lattice Semiconductor Corporation (LSCC)

Working capital 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
Revenue (ttm) US$ in thousands 739,750 742,381 720,500 701,474 666,971 633,429 593,440 547,401 512,592 477,839 448,836 423,177 404,418 398,270 397,467 394,481 391,430 387,170 387,207 393,364
Total current assets US$ in thousands 367,946 360,733 344,612 348,880 379,167 340,308 314,460 299,185 301,351 351,759 346,469 336,880 333,843 338,950 330,998 318,678 262,430 239,209 256,245 281,763
Total current liabilities US$ in thousands 97,400 100,663 91,966 97,158 127,373 110,278 106,408 99,063 106,181 103,369 88,572 80,679 79,731 87,834 90,522 93,727 99,819 81,428 83,117 70,189
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $739,750K ÷ ($367,946K – $97,400K)
= 2.73

The working capital turnover ratio for Lattice Semiconductor Corporation has shown fluctuation over the past few years, ranging from a low of 1.59 to a high of 2.85. This ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.

A higher working capital turnover ratio indicates that the company is more efficient in managing its working capital and converting it into sales. From the trend observed, there is an improvement in the ratio over the years, which suggests better efficiency in working capital management.

It is important to note that the ratio reached a peak of 2.85 in September 2023, indicating that for every dollar of working capital, the company generated $2.85 in sales. This is a positive sign of efficient utilization of resources.

However, the ratio dipped in recent quarters, signaling a potential slowdown in working capital efficiency. It would be crucial for the company to monitor and potentially improve its working capital management practices to maintain or even enhance its operational efficiency in converting working capital into sales revenue.