Lattice Semiconductor Corporation (LSCC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 69.63% | 68.89% | 62.75% | 60.66% | 61.11% |
| Operating profit margin | 28.72% | 28.55% | 19.67% | 12.95% | 15.13% |
| Pretax margin | 29.07% | 27.75% | 19.05% | 11.98% | 11.55% |
| Net profit margin | 35.05% | 27.26% | 18.71% | 11.72% | 11.15% |
The profitability ratios of Lattice Semiconductor Corporation have shown a consistently improving trend over the years, indicating efficient management of operational and financial performance.
1. Gross Profit Margin:
- The gross profit margin has been gradually increasing from 61.11% in 2019 to 69.63% in 2023, showcasing the company's ability to control its production costs and generate more profit from its revenue.
2. Operating Profit Margin:
- The operating profit margin of Lattice Semiconductor Corporation has also exhibited a positive trend, rising from 15.13% in 2019 to 28.72% in 2023. This indicates effective cost management and operational efficiency in the company's core business activities.
3. Pretax Margin:
- The pretax margin has shown significant improvement over the years, with a notable increase from 11.55% in 2019 to 29.07% in 2023. This suggests that the company has been successful in enhancing its profitability before accounting for taxes.
4. Net Profit Margin:
- The net profit margin has experienced a remarkable surge, reaching 35.05% in 2023 from 11.15% in 2019. This signifies that Lattice Semiconductor Corporation has been able to translate a higher proportion of its revenue into bottom-line profit, reflecting strong financial performance and effective cost control measures.
Overall, the improving trend in profitability ratios of Lattice Semiconductor Corporation indicates robust financial health and efficient management strategies, which have led to enhanced profitability and value creation for the company and its stakeholders.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 25.24% | 23.46% | 13.88% | 7.70% | 9.65% |
| Return on assets (ROA) | 30.81% | 22.40% | 13.20% | 6.97% | 7.11% |
| Return on total capital | 30.67% | 30.24% | 18.17% | 9.62% | 12.55% |
| Return on equity (ROE) | 37.44% | 36.72% | 23.30% | 12.33% | 13.27% |
Lattice Semiconductor Corporation's profitability ratios have shown a positive trend over the past five years, indicating improved financial performance and efficiency in generating profits from its assets and capital.
- Operating return on assets (Operating ROA) has steadily increased from 7.70% in 2020 to 25.24% in 2023. This implies that the company has become more efficient in utilizing its assets to generate operating profits.
- Return on assets (ROA) has also shown consistent growth, reaching 30.81% in 2023 from 6.97% in 2020. This metric reflects the company's ability to generate profits relative to its total assets.
- Return on total capital has shown a similar positive trend, increasing from 9.62% in 2020 to 30.67% in 2023. This ratio indicates how effectively the company is utilizing both equity and debt to generate returns.
- Return on equity (ROE) has shown significant improvement, growing from 12.33% in 2020 to 37.44% in 2023. This metric reflects the company's ability to generate profits for its shareholders from the equity they have invested.
Overall, the increasing trend in profitability ratios suggests that Lattice Semiconductor Corporation has been successful in improving its operational efficiency and financial performance over the years, ultimately creating more value for its stakeholders.