Lattice Semiconductor Corporation (LSCC)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 843,903 | 840,894 | 798,713 | 726,494 | 680,067 |
| Total stockholders’ equity | US$ in thousands | 710,932 | 692,020 | 487,163 | 411,633 | 384,427 |
| Financial leverage ratio | 1.19 | 1.22 | 1.64 | 1.76 | 1.77 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $843,903K ÷ $710,932K
= 1.19
The financial leverage ratio of Lattice Semiconductor Corporation has shown a gradual decline over the years from 1.77 as of December 31, 2020, to 1.19 as of December 31, 2024. This indicates a decreasing reliance on debt to finance its operations compared to equity. A lower financial leverage ratio typically signifies a lower level of financial risk, as the company is less dependent on borrowed funds. It suggests that the company may have been able to improve its financial position by reducing debt levels and strengthening its equity base over the analyzed period. This trend could be viewed positively by investors and creditors as it may enhance the company's financial stability and resilience to economic fluctuations. However, a very low leverage ratio could also indicate underutilization of debt financing and potential missed opportunities for leveraging financial leverage for strategic growth or expansion. Further analysis and consideration of the company's overall financial strategy and market conditions would be necessary to fully assess the implications of this trend.
Peer comparison
Dec 31, 2024