Lattice Semiconductor Corporation (LSCC)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	840,894	798,713	726,494	680,067	612,016
Total stockholders’ equity	US$ in thousands	692,020	487,163	411,633	384,427	327,659
Financial leverage ratio		1.22	1.64	1.76	1.77	1.87

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $840,894K ÷ $692,020K
= 1.22

The financial leverage ratio of Lattice Semiconductor Corporation has shown a decreasing trend over the past five years, declining from 1.87 in 2019 to 1.22 in 2023. This indicates that the company has been gradually reducing its reliance on debt financing to support its operations and growth. A lower financial leverage ratio suggests that the company is using less debt compared to equity in its capital structure, which can be viewed positively as it may reduce the financial risks associated with high leverage. However, it is essential to consider the reasons behind this trend and evaluate the overall financial health and performance of the company in conjunction with other financial metrics.