Lattice Semiconductor Corporation (LSCC)

Interest coverage

		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
Interest expense (ttm)	US$ in thousands	1,670	2,884	4,001	4,369	4,522	3,899	3,293	2,687	2,697	2,828	2,959	3,343	3,702	4,098	5,328	7,821	11,731	15,565	19,043	20,473
Interest coverage		127.07	77.34	53.52	47.60	41.28	41.67	42.94	45.18	38.62	32.38	26.16	18.85	14.09	12.25	10.15	6.89	4.84	2.56	1.87	0.46

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $212,214K ÷ $1,670K
= 127.07

The interest coverage ratio for Lattice Semiconductor Corporation has shown significant fluctuations over the reported period. The ratio has steadily increased from 0.46 at the end of 2019 to 127.07 at the end of 2023, indicating a substantial improvement in the company's ability to cover its interest payments with operating income.

The trend of increasing interest coverage is a positive indicator of the company's financial health and stability. It suggests that Lattice Semiconductor has been generating significantly more operating income relative to its interest expenses, providing a strong buffer against potential financial distress.

The company's interest coverage ratio exceeding 100 in the most recent period is particularly noteworthy, as it indicates that Lattice Semiconductor's operating income is more than sufficient to cover its interest obligations many times over. This level of coverage reflects a strong financial position and suggests a reduced risk of default on debt payments.

Overall, the improving trend in Lattice Semiconductor Corporation's interest coverage ratio signals a positive financial performance and increasing profitability, which bodes well for the company's ability to meet its debt obligations and sustain long-term growth.