Lattice Semiconductor Corporation (LSCC)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	128,317	145,722	131,570	182,332	118,081
Short-term investments	US$ in thousands	—	—	—	—	0
Total current liabilities	US$ in thousands	97,400	127,373	106,181	79,731	99,819
Cash ratio		1.32	1.14	1.24	2.29	1.18

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($128,317K + $—K) ÷ $97,400K
= 1.32

The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover these obligations.

Looking at the cash ratio trend for Lattice Semiconductor Corporation over the past five years, we observe some fluctuations. In 2020, the company had a notably high cash ratio of 2.29, indicating a robust liquidity position that year. However, this ratio decreased in the subsequent years, reaching its lowest point in 2022 at 1.14.

In 2023, the cash ratio improved to 1.32, showing a better ability to meet short-term obligations with available cash and cash equivalents compared to the previous year. While the ratio is still below the peak seen in 2020, the upward trend suggests a strengthening liquidity position for the company.

It is important to note that the ideal level of the cash ratio can vary across industries, and it is essential to consider other liquidity and financial metrics in conjunction with the cash ratio for a comprehensive analysis of Lattice Semiconductor Corporation's financial health.