Lattice Semiconductor Corporation's Financial Performance and Capital Efficiency Compared to Peers

• Lattice Semiconductor Corporation (NASDAQ:LSCC) has a Return on Invested Capital (ROIC) of 7.17%, which is lower than its Weighted Average Cost of Capital (WACC) of 11.64%.
• Among its peers, Monolithic Power Systems showcases the highest capital efficiency with a ROIC of 50.69% and a WACC of 9.69%.
• Other competitors like Microchip Technology and Silicon Laboratories display negative ROIC to WACC ratios, indicating significant challenges in generating profitable returns on their invested capital.

Lattice Semiconductor Corporation (NASDAQ:LSCC) is a leading provider of programmable logic devices. The company designs and develops low-power, field-programmable gate arrays (FPGAs) used in a variety of applications, including communications, computing, and industrial markets. Lattice competes with other semiconductor companies like Altair Engineering, Semtech Corporation, Microchip Technology, Silicon Laboratories, and Monolithic Power Systems.

In evaluating Lattice Semiconductor's financial performance, the Return on Invested Capital (ROIC) is a key metric. Lattice's ROIC is 7.17%, which is lower than its Weighted Average Cost of Capital (WACC) of 11.64%. This indicates that Lattice is not currently generating returns that exceed its cost of capital, which is a concern for investors looking for efficient capital utilization.

Comparing Lattice to its peers, Altair Engineering has a ROIC of 0.75% and a WACC of 10.57%, resulting in a ROIC to WACC ratio of 0.07. This suggests that Altair is also struggling to generate returns above its cost of capital. Similarly, Semtech Corporation's ROIC of 3.89% against a WACC of 13.27% results in a ratio of 0.29, indicating inefficiency in capital utilization.

Microchip Technology and Silicon Laboratories show even more concerning figures, with ROICs of -0.03% and -16.27%, respectively. Their WACC figures of 9.58% and 10.52% lead to negative ROIC to WACC ratios, highlighting significant challenges in generating profitable returns on their invested capital.

In contrast, Monolithic Power Systems stands out with a ROIC of 50.69% and a WACC of 9.69%, resulting in a ROIC to WACC ratio of 5.23. This indicates that Monolithic Power Systems is highly efficient in using its capital to generate returns, making it the leader in capital efficiency among its peers.