Lattice Semiconductor Corporation (LSCC)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	34,457	214,178	187,367	100,816	52,366
Total assets	US$ in thousands	843,903	840,894	798,713	726,494	680,067
Operating ROA		4.08%	25.47%	23.46%	13.88%	7.70%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $34,457K ÷ $843,903K
= 4.08%

Lattice Semiconductor Corporation has exhibited fluctuating trends in its operating return on assets (operating ROA) over the past five years. The company's operating ROA increased from 7.70% as of December 31, 2020, to 13.88% as of December 31, 2021, indicating an improvement in its operating efficiency and profitability. This positive momentum continued into the following years, with significant jumps in operating ROA to 23.46% as of December 31, 2022, and further to 25.47% as of December 31, 2023, reflecting enhanced utilization of its assets to generate operating income.

However, the operating ROA took a downturn in the most recent period, dropping to 4.08% as of December 31, 2024. This decline could raise concerns about the company's ability to efficiently convert its assets into operating profits during that particular period.

Overall, while Lattice Semiconductor Corporation demonstrated remarkable improvements in its operating ROA in the earlier years, the significant drop in the most recent year underscores the importance of closely monitoring the company's asset utilization and operational performance in the future.