Lattice Semiconductor Corporation (LSCC)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.78 | 3.58 | 3.75 | 3.59 | 2.98 | 3.09 | 2.96 | 3.02 | 2.84 | 3.40 | 3.91 | 4.18 | 4.19 | 3.86 | 3.66 | 3.40 | 2.63 | 2.94 | 3.08 | 4.01 |
| Quick ratio | 2.39 | 2.19 | 2.18 | 1.15 | 1.88 | 1.08 | 1.11 | 1.24 | 1.99 | 1.76 | 2.12 | 2.30 | 2.29 | 2.08 | 1.82 | 1.88 | 1.18 | 1.20 | 1.48 | 1.89 |
| Cash ratio | 1.32 | 1.14 | 1.13 | 1.15 | 1.14 | 1.08 | 1.11 | 1.24 | 1.24 | 1.76 | 2.12 | 2.30 | 2.29 | 2.08 | 1.82 | 1.88 | 1.18 | 1.20 | 1.48 | 1.89 |
Lattice Semiconductor Corporation's liquidity ratios have shown fluctuations over the past few quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has generally been above 3, indicating a healthy liquidity position. However, it experienced a slight decline in the most recent quarter compared to the previous period.
The quick ratio, also known as the acid-test ratio, provides a more conservative measure by excluding inventory from current assets. Lattice Semiconductor's quick ratio has also been relatively strong, staying above 1 in most periods. However, it saw a significant drop in the first quarter of the fiscal year 2023, which might raise concerns about the company's ability to meet its short-term obligations without relying on inventory.
The cash ratio, which is the most stringent liquidity measure as it only includes cash and cash equivalents, has generally been at or above 1 for Lattice Semiconductor. This indicates that the company holds sufficient liquid assets to cover its current liabilities.
Overall, while Lattice Semiconductor Corporation has maintained healthy liquidity ratios, the fluctuations in the quick ratio in the most recent quarter warrant further monitoring to ensure the company's ability to meet short-term obligations without relying on inventory.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle measures how long it takes for a company like Lattice Semiconductor Corporation to convert its investments in inventory and other resources into cash flows from sales. Looking at the data provided, we observe fluctuations in Lattice Semiconductor Corporation's cash conversion cycle over the past few quarters.
In the most recent quarter, ending December 31, 2023, the cash conversion cycle was 122.14 days. This indicates that, on average, it took the company this many days to convert its investment in resources like inventory into cash flow from sales. Comparing this to the previous quarter, there was a slight improvement as the cycle decreased from 126.98 days to 122.14 days.
However, in the quarter ending June 30, 2023, the cash conversion cycle was significantly higher at 128.34 days. This suggests that the company took longer to convert its investments into cash during that period. The improvement in the most recent quarter indicates better management of resources and potentially quicker sales conversion.
In the quarter ending September 30, 2022, there was a significant drop in the cash conversion cycle to 54.66 days, indicating efficient management of resources and quick sales conversion. However, this efficiency was not sustained in the subsequent quarters, as the cycle increased again before showing improvement in the latest period.
Overall, fluctuations in the cash conversion cycle indicate changes in the company's efficiency in managing working capital. Lattice Semiconductor Corporation should continue to monitor and work on optimizing this cycle to ensure smoother operations and better cash flow management.