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.