Lattice Semiconductor Corporation (LSCC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 66.82% | 69.82% | 68.46% | 62.42% | 60.11% |
| Operating profit margin | 6.76% | 29.05% | 28.37% | 19.56% | 12.83% |
| Pretax margin | 7.11% | 29.15% | 27.58% | 18.94% | 11.87% |
| Net profit margin | 12.00% | 35.14% | 27.09% | 18.61% | 11.61% |
Looking at the profitability ratios of Lattice Semiconductor Corporation, we can see a positive trend in its gross profit margin over the years, starting at 60.11% in 2020 and increasing to 66.82% in 2024. This indicates an improvement in the company's ability to generate revenue after accounting for the cost of goods sold.
In terms of operating profit margin, there was a significant increase from 12.83% in 2020 to 28.37% in 2022, indicating better operational efficiency. However, there was a notable decline in 2024 to 6.76%, suggesting potential challenges in controlling operating expenses or generating revenue.
The pretax margin also shows a positive trend, starting at 11.87% in 2020 and reaching 29.15% in 2023 before decreasing to 7.11% in 2024. This indicates fluctuations in pre-tax profitability, which could be influenced by various factors like taxes, interest expenses, and non-operating income.
When looking at the net profit margin, we observe a steady upward trend from 11.61% in 2020 to 35.14% in 2023, signifying the company's ability to control expenses and generate profits. However, there was a decrease in 2024 to 12.00%, potentially indicating challenges in maintaining profitability levels.
Overall, while Lattice Semiconductor Corporation has shown improvement in its profitability margins over the years, there are fluctuations in certain ratios that may require further analysis to understand the underlying factors impacting the company's bottom line.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.08% | 25.47% | 23.46% | 13.88% | 7.70% |
| Return on assets (ROA) | 7.24% | 30.81% | 22.40% | 13.20% | 6.97% |
| Return on total capital | 8.53% | 30.95% | 38.23% | 24.38% | 13.57% |
| Return on equity (ROE) | 8.60% | 37.44% | 36.72% | 23.30% | 12.33% |
Over the five-year period from 2020 to 2024, Lattice Semiconductor Corporation displayed varying levels of profitability as evidenced by its profitability ratios.
1. Operating return on assets (Operating ROA):
- Lattice Semiconductor's Operating ROA improved steadily from 7.70% in 2020 to a peak of 25.47% in 2023, indicating efficient management in generating operating profit from its assets. However, it declined significantly to 4.08% in 2024, suggesting potential operational challenges or lower asset utilization that year.
2. Return on assets (ROA):
- The company's ROA also showed an upward trend, reaching its highest point of 30.81% in 2023 from 6.97% in 2020. This indicates Lattice Semiconductor's effectiveness in generating profits relative to its total assets. However, there was a slight decrease to 7.24% in 2024, which could be a sign of lower overall profitability in that fiscal year.
3. Return on total capital:
- Lattice Semiconductor's Return on Total Capital saw significant fluctuations during the period under review. The ratio surged from 13.57% in 2020 to a peak of 38.23% in 2022, displaying strong capital efficiency. However, it dropped notably to 8.53% in 2024, potentially signaling challenges in optimizing its capital structure or returns on invested capital.
4. Return on equity (ROE):
- The ROE of Lattice Semiconductor exhibited an upward trajectory, peaking at 37.44% in 2023 from 12.33% in 2020, reflecting the company's ability to generate earnings for its shareholders. Nevertheless, there was a decline to 8.60% in 2024, indicating a decrease in shareholder value relative to the equity investment.
In summary, Lattice Semiconductor Corporation experienced notable fluctuations in its profitability ratios over the five-year period, with strengths in profitability management evident in some years but also potential challenges seen in the declining ratios in certain fiscal years. Further analysis would be needed to identify the specific drivers behind these fluctuating profitability trends.