Lattice Semiconductor Corporation (LSCC)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	212,214	223,057	214,122	207,971	186,679	162,480	141,398	121,407	104,152	91,566	77,410	63,001	52,158	50,214	54,097	53,855	56,796	39,810	35,690	9,501
Long-term debt	US$ in thousands	0	0	43,885	103,819	128,752	148,685	132,159	136,461	140,760	145,057	149,352	153,644	157,934	162,215	166,501	170,791	125,072	139,230	172,287	225,662
Total stockholders’ equity	US$ in thousands	692,020	626,170	574,761	514,974	487,163	441,731	435,921	421,555	411,633	392,900	397,315	391,585	384,427	376,893	364,130	342,959	327,659	309,645	295,177	281,155
Return on total capital		30.67%	35.62%	34.61%	33.61%	30.31%	27.52%	24.89%	21.76%	18.85%	17.02%	14.16%	11.55%	9.62%	9.31%	10.19%	10.48%	12.55%	8.87%	7.63%	1.87%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $212,214K ÷ ($0K + $692,020K)
= 30.67%

Lattice Semiconductor Corporation's return on total capital has shown a consistent improvement over the past few quarters, reflecting the company's ability to generate returns on the total capital employed in its operations. The return on total capital ranged between 30.67% and 35.62% in the most recent quarters, indicating a strong performance in utilizing both debt and equity to generate profits.

The increasing trend in return on total capital over the quarters demonstrates the company's efficiency in managing its capital structure and optimizing its resources to drive profitability. Additionally, the steady improvement in the ratio suggests that Lattice Semiconductor Corporation has been successful in enhancing its operational performance and capital efficiency.

Investors and stakeholders may view the upward trend in return on total capital positively, as it indicates the company's ability to generate substantial returns on the total capital invested in its business activities. However, it is important to continue monitoring this ratio to ensure sustained profitability and efficient capital allocation in the future.