Lattice Semiconductor Corporation (LSCC)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	108.51	116.06	126.07	135.46	118.41	102.04	114.13	111.42	109.24	58.83	53.19	49.28	54.20	91.42	74.94	67.90	76.27	92.83	112.25	122.91
Days of sales outstanding (DSO)	days	51.50	52.07	48.93	—	51.45	—	—	—	56.86	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	37.86	41.16	46.66	47.25	45.10	47.39	57.95	59.75	55.91	32.32	27.96	22.70	23.10	61.64	67.59	61.66	61.52	46.11	59.20	61.51
Cash conversion cycle	days	122.14	126.98	128.34	88.20	124.77	54.66	56.19	51.67	110.19	26.50	25.23	26.58	31.10	29.77	7.35	6.23	14.75	46.71	53.05	61.40

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 108.51 + 51.50 – 37.86
= 122.14

The cash conversion cycle of Lattice Semiconductor Corporation has shown fluctuations over the periods analyzed. The cash conversion cycle measures the time it takes for a company to convert its investment in inventory into cash received from sales.

From the data provided, we can observe that the cash conversion cycle ranged from a high of 128.34 days to a low of 6.23 days. A longer cash conversion cycle indicates that the company is taking longer to convert its investments in inventory into cash, which may imply inefficiencies in managing working capital.

In the most recent period, the cash conversion cycle was 122.14 days, which indicates that the company is taking over 4 months to complete the cycle. This may suggest that Lattice Semiconductor Corporation could be facing challenges in efficiently managing its inventory, accounts receivable, and accounts payable.

It is noteworthy that there have been significant variations in the cash conversion cycle over the periods analyzed, reflecting potential changes in the company's working capital management practices or business operations. Further monitoring of the trend in the cash conversion cycle will be essential in assessing the company's liquidity and operational efficiency.