Lattice Semiconductor Corporation (LSCC)

Solvency ratios

	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
Debt-to-assets ratio	0.00	0.00	0.06	0.14	0.16	0.20	0.18	0.19	0.19	0.21	0.22	0.22	0.23	0.24	0.25	0.26	0.20	0.23	0.28	0.35
Debt-to-capital ratio	0.00	0.00	0.07	0.17	0.21	0.25	0.23	0.24	0.25	0.27	0.27	0.28	0.29	0.30	0.31	0.33	0.28	0.31	0.37	0.45
Debt-to-equity ratio	0.00	0.00	0.08	0.20	0.26	0.34	0.30	0.32	0.34	0.37	0.38	0.39	0.41	0.43	0.46	0.50	0.38	0.45	0.58	0.80
Financial leverage ratio	1.22	1.25	1.32	1.49	1.64	1.72	1.69	1.71	1.76	1.79	1.75	1.76	1.77	1.81	1.86	1.94	1.87	1.92	2.09	2.29

Solvency Ratio Analysis for Lattice Semiconductor Corporation:

1. Debt-to-Assets Ratio: The trend in the debt-to-assets ratio has been relatively stable, starting at 0.16 in Q4 2019 and declining to 0.14 in Q1 2023 before rising to 0.06 in Q2 2023. This indicates that the company has been effectively managing its debt in relation to its total assets, with lower ratios generally considered favorable.

2. Debt-to-Capital Ratio: The debt-to-capital ratio has shown a fluctuating pattern, decreasing from 0.37 in Q4 2019 to 0.17 in Q1 2023 before increasing to 0.07 in Q2 2023. This suggests that the company's proportion of debt to total capital has varied, indicating some changes in the financial structure.

3. Debt-to-Equity Ratio: The debt-to-equity ratio has demonstrated a similar fluctuating trend, initially decreasing from 0.80 in Q4 2019 to 0.20 in Q1 2023 but then rising to 0.08 in Q2 2023. This signifies a mix of debt and equity financing but with an increase in leverage over time.

4. Financial Leverage Ratio: The financial leverage ratio has exhibited an overall increasing trend, starting at 1.87 in Q4 2019 and reaching 1.49 in Q1 2023 before rising to 1.32 in Q2 2023. This indicates that the company's reliance on debt to finance its operations has been on the rise, implying higher financial risk.

In conclusion, Lattice Semiconductor Corporation has maintained a stable debt-to-assets ratio, while its debt-to-capital and debt-to-equity ratios have shown fluctuations over the periods analyzed. The increasing financial leverage ratio suggests a growing reliance on debt, which could indicate a higher level of financial risk for the company. This trend indicates the importance of monitoring and managing the company's debt levels effectively to maintain financial stability.

Coverage ratios

	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
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

The interest coverage ratio for Lattice Semiconductor Corporation has shown significant fluctuations over the past few years. The interest coverage ratio measures a company's ability to pay its interest expense on outstanding debt.

From December 2019 to September 2021, the interest coverage ratio consistently decreased, indicating a higher risk as the ratio fell below 1, highlighting potential financial distress. However, starting from September 2021, there has been a notable improvement in the interest coverage ratio, reaching a peak of 127.07 in December 2023. This significant increase suggests that the company's operating income is now more than sufficient to cover its interest expenses, reflecting improved financial health and reduced financial risk.

Overall, the trend in Lattice Semiconductor Corporation's interest coverage ratio demonstrates a recent positive financial performance and a more secure position in meeting its interest obligations.