Lattice Semiconductor Corporation (LSCC)

Lattice Semiconductor Corporation's liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio has shown a decreasing trend from 4.19 in 2020 to 3.66 in 2024, although it remains above 1, suggesting that the company has more than enough current assets to cover its current liabilities.

In terms of quick ratio, there is also a decline from 2.29 in 2020 to 1.37 in 2024. This ratio excludes inventory from current assets, providing a more conservative measure of liquidity. The decrease in quick ratio may indicate a potential slowdown in the company's ability to meet its short-term obligations without relying on selling inventory.

The cash ratio has remained relatively stable over the years, indicating the company's cash liquidity position has not significantly changed. The cash ratio of 1.37 in 2024 suggests that Lattice Semiconductor Corporation has enough cash to cover its current liabilities, although it might be less conservative compared to the quick ratio.

Overall, the liquidity ratios of Lattice Semiconductor Corporation show a mixed trend, with a slight decrease in some ratios over the years. It is essential for the company to monitor these ratios closely to ensure it maintains a healthy liquidity position to support its short-term obligations.

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Additional liquidity measure

The cash conversion cycle of Lattice Semiconductor Corporation has exhibited fluctuations over the years. As of December 31, 2020, the company's cash conversion cycle stood at 144.82 days, indicating the number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

By December 31, 2021, the cash conversion cycle decreased to 127.40 days, suggesting an improvement in the efficiency of the company's working capital management. However, there was an increase to 193.40 days by December 31, 2022, which might indicate potential challenges in managing the company's inventory, receivables, and payables.

The cash conversion cycle improved to 162.13 days by December 31, 2023, showing a partial recovery from the previous year's increase. However, by December 31, 2024, the cash conversion cycle noticeably increased to 223.34 days, which could indicate potential cash flow challenges or inefficiencies in managing working capital.

Overall, fluctuations in the cash conversion cycle of Lattice Semiconductor Corporation suggest the need for continued monitoring and potential improvements in working capital management to enhance operational efficiency and cash flow generation.