Lattice Semiconductor Corporation (NASDAQ:LSCC) has a ROIC of 7.17% and a WACC of 11.47%, resulting in a ROIC/WACC ratio of 0.625.
Comparatively, Monolithic Power Systems, Inc. showcases a ROIC of 50.69% and a WACC of 9.52%, leading to a ROIC/WACC ratio of 5.325, indicating superior financial performance.
Other competitors like Altair Engineering Inc., Semtech Corporation, and Silicon Laboratories Inc. show less efficiency in generating returns over their cost of capital.
Lattice Semiconductor Corporation (NASDAQ:LSCC) is a leading provider of low power, programmable solutions. The company focuses on delivering products that enable efficient and secure connectivity for a wide range of applications. Lattice competes with other semiconductor companies like Altair Engineering Inc., Semtech Corporation, Microchip Technology Incorporated, Silicon Laboratories Inc., and Monolithic Power Systems, Inc.
In evaluating Lattice’s financial efficiency, the Return on Invested Capital (ROIC) is 7.17%, while the Weighted Average Cost of Capital (WACC) is 11.47%. This results in a ROIC/WACC ratio of 0.625, indicating that Lattice’s returns are less than its cost of capital. This suggests that the company may need to improve its capital utilization to enhance shareholder value.
Comparatively, Altair Engineering Inc. has a ROIC of 0.75% and a WACC of 10.57%, resulting in a ROIC/WACC ratio of 0.071. This is significantly lower than Lattice’s ratio, indicating even less efficiency in generating returns over its cost of capital. Semtech Corporation also shows a lower efficiency with a ROIC/WACC ratio of 0.295.
Microchip Technology Incorporated presents a slightly better scenario with a ROIC/WACC ratio of 0.364, yet it still falls short of achieving returns that exceed its cost of capital. Silicon Laboratories Inc. has a negative ROIC of -18.15% and a ROIC/WACC ratio of -1.754, highlighting a challenging financial position.
Monolithic Power Systems, Inc. stands out with a ROIC of 50.69% and a WACC of 9.52%, resulting in a ROIC/WACC ratio of 5.325. This indicates a highly efficient use of capital, suggesting strong growth potential and superior financial performance compared to its peers, including Lattice.