Lattice Semiconductor Corporation (LSCC)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 223.34 | 162.13 | 193.40 | 127.40 | 144.82 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 223.34 | 162.13 | 193.40 | 127.40 | 144.82 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 223.34 + — – —
= 223.34
The cash conversion cycle for Lattice Semiconductor Corporation has fluctuated over the past five years. As of December 31, 2020, the company's cash conversion cycle stood at 144.82 days, indicating that it took approximately 145 days for the company to convert its investments in raw materials into cash receipts from customers.
By the end of December 31, 2021, the cash conversion cycle improved to 127.40 days, suggesting that the company became more efficient in managing its working capital, resulting in a quicker conversion of inventory and receivables into cash.
However, by December 31, 2022, the cash conversion cycle increased significantly to 193.40 days, indicating a potential slowdown in the company's operations in converting its resources into cash. This may imply challenges in managing inventory levels and collecting receivables promptly.
The trend continued into December 31, 2023, where the cash conversion cycle stood at 162.13 days, showing some improvement from the previous year but still remaining elevated compared to the 2021 level.
As of December 31, 2024, the cash conversion cycle reached 223.34 days, the highest level in the five-year period. This suggests that Lattice Semiconductor Corporation may face challenges in efficiently managing its working capital and converting its resources into cash, potentially impacting its liquidity and operational efficiency.
Overall, the fluctuation in the cash conversion cycle over the years indicates the need for Lattice Semiconductor Corporation to focus on optimizing its working capital management strategies to enhance liquidity, streamline operations, and improve overall financial performance.
Peer comparison
Dec 31, 2024