Synaptics Incorporated (SYNA)

Days of inventory on hand (DOH)

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Inventory turnover 4.26 4.29 4.57 4.43 4.59 4.48 4.31 4.38 4.66 4.89 4.42 4.54 4.69 5.09 5.23 7.99 8.88 10.49 10.25 6.73
DOH days 85.73 85.03 79.78 82.41 79.48 81.39 84.72 83.25 78.34 74.57 82.49 80.40 77.76 71.64 69.78 45.66 41.09 34.79 35.61 54.25

June 30, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.26
= 85.73

The data on Synaptics Incorporated's days of inventory on hand (DOH) from September 30, 2020, through June 30, 2025, reveals notable fluctuations and trends over the observed period. Initially, the DOH was approximately 54.25 days in September 2020, reflecting a relatively efficient inventory management stance during that period. This figure decreased substantially to an average of around 35.61 days by the end of 2020 and remained relatively low through early 2021, reaching approximately 34.79 days in March 2021.

Subsequently, the DOH experienced an upward trend, reaching about 45.66 days by September 2021 and then escalating significantly to approximately 69.78 days at the close of 2021. This upward movement continued into 2022, with the DOH increasing further to approximately 71.64 days in March, 77.76 days in June, and reaching a peak of approximately 82.49 days by the end of 2022. The early months of 2023 showed some stabilization, with the DOH decreasing slightly to 74.57 days in March and then fluctuating around 78.34 days in June and 83.25 days in September.

The trend persisted into late 2023 and early 2024, with the DOH reaching roughly 84.72 days at the end of 2023 and decreasing marginally to approximately 81.39 days in March 2024 and 79.48 days in June 2024. The pattern indicates a relatively stable yet elevated DOH, averaging around 82 days in late 2024.

Looking forward, the projections for March and June 2025 suggest a slight increase in DOH to approximately 85.03 days and 85.73 days, respectively. This indicates a slight elongation in inventory holding periods over time.

The overall trend demonstrates a marked increase in the inventory holding period from 2020 through mid-2025. This lengthening of DOH could be indicative of several underlying factors, such as:

- Shifts in inventory management strategy: The company may be accumulating higher inventory levels relative to sales, possibly to buffer against supply chain disruptions or anticipated demand increases.
- Market conditions or product mix changes: Changes in product demand or shifts in product mix may require additional inventory holding periods.
- Operational or supply chain considerations: Extended inventory days may reflect longer lead times, manufacturing delays, or strategic stockpiling.

The elevated and increasing levels of DOH suggest that Synaptics may be holding more inventory for prolonged periods than in earlier years, which could impact liquidity and working capital management. Continuous monitoring of this ratio and understanding its drivers are essential for assessing operational efficiency and forecasting future financial health.