Lattice Semiconductor Corporation's Financial Efficiency Outshines Peers

• Lattice Semiconductor Corporation (NASDAQ:LSCC) demonstrates superior financial efficiency with a ROIC of 19.74% and a WACC of 10.76%, resulting in a ROIC to WACC ratio of 1.83.
• Competitors like Altair Engineering Inc., Semtech Corporation, and Microchip Technology Incorporated show lower efficiency in utilizing their capital.
• Monolithic Power Systems, Inc. is a close competitor in terms of efficiency, but Lattice Semiconductor leads with the highest ROIC to WACC ratio among its peers.

Lattice Semiconductor Corporation (NASDAQ:LSCC) is a leading provider of programmable logic devices, which are used in a variety of applications including communications, computing, and industrial markets. The company competes with other semiconductor firms like Altair Engineering Inc., Semtech Corporation, and Microchip Technology Incorporated. Lattice's focus on innovation and efficiency is reflected in its financial metrics, particularly its Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC).

Lattice Semiconductor boasts a ROIC of 19.74% and a WACC of 10.76%, resulting in a ROIC to WACC ratio of 1.83. This indicates that Lattice is generating returns significantly above its cost of capital, showcasing its efficiency in utilizing its invested capital. This strong performance sets Lattice apart from its peers in the semiconductor industry.

In comparison, Altair Engineering Inc. has a ROIC of 1.66% and a WACC of 10.63%, leading to a ROIC to WACC ratio of 0.16. This suggests that Altair is not generating sufficient returns relative to its cost of capital. Similarly, Semtech Corporation's ROIC of 0.47% and WACC of 9.78% result in a low ratio of 0.05, indicating inefficiencies in capital utilization.

Microchip Technology Incorporated shows a ROIC of 7.43% against a WACC of 10.34%, yielding a ratio of 0.72. While better than some peers, it still falls short of Lattice's performance. Silicon Laboratories Inc. presents a negative ROIC of -21.63% with a WACC of 9.88%, resulting in a negative ratio of -2.19, highlighting significant inefficiencies.

Monolithic Power Systems, Inc. stands out with a ROIC of 17.15% and a WACC of 9.62%, achieving a ROIC to WACC ratio of 1.78. This places it close to Lattice in terms of efficiency, but Lattice still leads with the highest ratio among its peers, underscoring its superior ability to generate returns above its cost of capital.