Synaptics Incorporated (SYNA)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	593,900	570,500	546,700	529,700	523,500	511,700	539,000	577,400	639,200	723,400	785,400	814,400	796,600	743,300	697,300	709,100	728,400	727,000	749,200	771,000
Inventory	US$ in thousands	139,500	132,900	119,500	119,600	114,000	114,100	125,100	131,700	137,200	147,800	177,500	179,400	169,700	145,900	133,300	88,700	82,000	69,300	73,100	114,600
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

June 30, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $593,900K ÷ $139,500K
= 4.26

The inventory turnover ratio for Synaptics Incorporated exhibits significant fluctuations over the analyzed period from September 30, 2020, to June 30, 2025. Initially, the ratio increased from 6.73 in September 2020 to a peak of 10.49 in March 2021, indicating an improvement in inventory management and more efficient stock utilization during this period.

Subsequently, the ratio demonstrated a declining trend, dropping to 8.88 by June 2021 and further decreasing to 7.99 in September 2021. This decline continued sharply through late 2021 and into 2022, with ratios reaching as low as approximately 4.42 by December 2022. The sustained lower levels suggest a slowdown in inventory turnover, potentially reflecting excess inventory, slower sales, or changes in inventory management strategies.

In the subsequent period from early 2023 to mid-2025, the inventory turnover exhibited relative stability, oscillating around the mid-4 range, with minor fluctuations such as a slight increase to 4.89 in March 2023 and reaching approximately 4.57 by December 2024. Toward mid-2025, the ratio slightly declined again, settling around 4.26 in June 2025.

Overall, the trend indicates that Synaptics experienced a notable decline in inventory turnover after reaching high efficiency levels around March 2021, with a prolonged period of reduced turnover ratios. This pattern suggests potential challenges in inventory management or shifts in market conditions affecting sales velocity. The relatively stable but lower ratios in recent periods point to a possible stabilization in inventory activity, although at a lower efficiency level compared to the early 2021 peak.