Lattice Semiconductor Corporation (LSCC)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	212,270	186,258	100,364	52,158	56,796
Interest expense	US$ in thousands	2,967	4,146	2,738	3,702	11,731
Interest coverage		71.54	44.92	36.66	14.09	4.84

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $212,270K ÷ $2,967K
= 71.54

The interest coverage of Lattice Semiconductor Corporation has been steadily increasing over the past five years, indicating an improving ability to meet its interest payment obligations. The company's interest coverage ratio rose from 4.84 in 2019 to 71.54 in 2023, reflecting a significant improvement in its financial health and liquidity position.

The substantial increase in the interest coverage ratio suggests that Lattice Semiconductor has generated sufficient earnings to cover its interest expenses over the years. The trend also indicates that the company's profitability has been increasing, enabling it to comfortably service its debt obligations.

Overall, the consistent improvement in Lattice Semiconductor's interest coverage ratio demonstrates the company's strengthened financial position and ability to manage its debt effectively. It suggests a positive outlook for the company's financial performance and ability to meet its interest payment obligations in the future.