Lattice Semiconductor Corporation (LSCC)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	98.51	120.41	81.86	88.42	75.03
Days of sales outstanding (DSO)	days	51.54	52.30	56.87	58.29	60.74
Number of days of payables	days	34.38	45.86	41.90	37.68	60.52
Cash conversion cycle	days	115.67	126.84	96.83	109.03	75.24

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 98.51 + 51.54 – 34.38
= 115.67

The cash conversion cycle of Lattice Semiconductor Corporation has fluctuated over the past five years. In 2023, the cash conversion cycle improved to 115.67 days from 126.84 days in 2022. This indicates that the company's ability to convert its resources into cash has become more efficient. However, compared to 2021 where the cycle was shorter at 96.83 days, there is still room for further improvement.

In 2020 and 2019, the cash conversion cycle was 109.03 days and 75.24 days, respectively, showing variability in the efficiency of the company's working capital management during those years. The significant increase in 2022 compared to 2019 may suggest potential challenges or inefficiencies in managing the company's operating cycle.

Overall, Lattice Semiconductor Corporation should continue monitoring and evaluating its cash conversion cycle to ensure optimal utilization of its resources and maximize cash flow efficiency.