Synaptics Incorporated (SYNA)

Payables turnover

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Cost of revenue (ttm)	US$ in thousands	758,000	740,500	783,100	836,800	892,000	967,700	1,048,400	1,081,400	1,060,900	1,002,400	929,000	902,300	873,400	880,300	837,300	874,900	894,700	938,000	1,015,800	1,062,300
Payables	US$ in thousands	87,500	70,900	83,000	63,900	45,800	60,800	82,700	125,000	141,800	135,600	134,500	109,700	97,600	106,900	74,400	77,200	60,600	86,900	88,900	99,000
Payables turnover		8.66	10.44	9.43	13.10	19.48	15.92	12.68	8.65	7.48	7.39	6.91	8.23	8.95	8.23	11.25	11.33	14.76	10.79	11.43	10.73

June 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $758,000K ÷ $87,500K
= 8.66

Synaptics Incorporated's payables turnover ratio has shown fluctuation over the period being analyzed. The payables turnover ratio indicates how many times a company pays off its accounts payable during a specific period. A higher payables turnover ratio generally indicates that the company is managing its accounts payable effectively and efficiently.

From the data provided, we can observe that Synaptics' payables turnover ratio has varied significantly, ranging from a low of 6.91 to a high of 19.48. A higher payables turnover ratio can suggest that the company is paying its suppliers more frequently, which may be beneficial for maintaining good relationships with suppliers and potentially negotiating better terms in the future.

The trend of the payables turnover ratio over the period shows that there have been fluctuations in the company's payment practices. There was a notable spike in the payables turnover ratio in June 2023 at 19.48, indicating a significant increase in the frequency of paying off accounts payable during that period. On the other hand, there were times when the payables turnover ratio dipped, such as in March 2022 at 7.39, suggesting a slower rate of paying off accounts payable during that period.

Overall, it is essential to consider the payables turnover ratio in conjunction with other financial ratios and factors to gain a comprehensive understanding of Synaptics' liquidity management and relationships with suppliers.