Synaptics Incorporated (SYNA)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 6.65 6.49 6.26 6.35 6.50 6.55 5.91 6.03 6.25 6.87 6.97 10.17 10.65 12.70 11.45 7.63 8.77 9.82 12.37 7.69
Receivables turnover 6.28 6.03 7.60 9.74 7.93 7.15 6.70 6.27 5.29 5.19 4.51 5.01 5.75 5.93 5.57 6.23 7.33 5.58 5.42 5.92
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
Working capital turnover 1.01 0.96 1.08 1.25 1.28 1.46 1.67 1.70 1.81 1.81 1.99 3.03 3.34 1.70 3.11 3.92 1.72 2.24 2.42 2.81

The inventory turnover ratio for Synaptics Incorporated has shown a relatively stable trend over the past six quarters, averaging around 6 to 7 times. This indicates that the company is efficient in managing its inventory and turning it into sales.

On the other hand, the receivables turnover ratio has fluctuated significantly, ranging from 4.51 to 9.74 times. Despite the variability, the ratio has generally been above 5 times, suggesting that Synaptics is effective in collecting receivables from its customers.

The payables turnover ratio has also displayed variability, with values ranging from 6.91 to 19.48 times. A higher turnover ratio implies that the company is able to manage its payables efficiently, possibly negotiating favorable credit terms with suppliers.

The working capital turnover ratio has been relatively stable, averaging around 1.5 to 2 times. This indicates that Synaptics is effectively utilizing its working capital to generate sales revenue.

In conclusion, Synaptics Incorporated has demonstrated efficiency in managing its inventory, receivables, payables, and working capital, which is crucial for optimizing its operational performance and financial health.

Average number of days

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
Days of inventory on hand (DOH) days 54.89 56.24 58.31 57.45 56.14 55.75 61.80 60.55 58.38 53.13 52.37 35.88 34.27 28.73 31.87 47.81 41.61 37.16 29.50 47.48
Days of sales outstanding (DSO) days 58.12 60.54 48.02 37.49 46.04 51.07 54.44 58.23 68.95 70.31 80.89 72.92 63.53 61.53 65.53 58.58 49.82 65.39 67.29 61.69
Number of days of payables days 42.13 34.95 38.69 27.87 18.74 22.93 28.79 42.19 48.79 49.38 52.84 44.38 40.79 44.32 32.43 32.21 24.72 33.82 31.94 34.02

To assess Synaptics Incorporated's efficiency in managing its inventory, accounts receivable, and accounts payable, we analyze the following activity ratios:

1. Days of Inventory on Hand (DOH): This ratio indicates how many days, on average, inventory is held before being sold. A decreasing trend in this ratio over time suggests that the company is selling products more quickly. In the latest period (June 30, 2024), the DOH was 54.89 days, showing a slight improvement compared to the previous periods. This suggests that Synaptics has been managing its inventory more efficiently in recent quarters.

2. Days of Sales Outstanding (DSO): DSO measures the average number of days it takes for the company to collect payments from its customers. A decreasing trend in DSO indicates that the company is collecting payments more quickly. In the most recent period (June 30, 2024), the DSO was 58.12 days, showing an increase from the previous quarter but still lower than some earlier periods. This suggests that Synaptics may need to focus on improving its accounts receivable collection process to maintain a healthy cash flow.

3. Number of Days of Payables: This ratio reflects the average number of days it takes the company to pay its suppliers. An increasing trend in this ratio may indicate that the company is taking longer to pay its suppliers. In the latest period (June 30, 2024), the number of days of payables was 42.13 days, which has increased compared to the previous quarter but is still within a reasonable range. This indicates that Synaptics is maintaining a balance in its payable terms with suppliers.

Overall, Synaptics has shown improvements in managing its inventory and payables, although there may be room for further optimization in accounts receivable management to enhance cash flow efficiency. Monitoring these activity ratios closely will be crucial for assessing the company's operational effectiveness and working capital management.

Long-term

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
Fixed asset turnover 11.85 11.79 13.55 16.06 19.57 22.60 25.94 28.09 27.11 24.54 24.76 14.66 14.38 14.55 14.84 15.68 16.97 15.96 15.24 13.90
Total asset turnover 0.32 0.34 0.37 0.42 0.50 0.57 0.63 0.63 0.60 0.57 0.55 0.76 0.59 0.64 0.77 0.80 0.84 0.90 0.92 0.96

Synaptics Incorporated's long-term activity ratios show varying trends over the past few quarters. The fixed asset turnover ratio has fluctuated, reaching a peak of 28.09 in September 2022 before gradually declining to 11.85 in June 2024. This indicates that the company's efficiency in generating sales from its fixed assets has decreased over time.

On the other hand, the total asset turnover ratio has also fluctuated but generally shows an increasing trend, peaking at 0.96 in December 2019 and then decreasing to 0.32 in June 2024. This suggests that Synaptics has improved its ability to generate sales from its total assets, although the recent decrease in this ratio may indicate a slowdown in asset utilization efficiency.

Overall, while the total asset turnover ratio indicates an improvement in asset utilization efficiency, the declining trend in fixed asset turnover ratio raises some concerns about the company's ability to generate sales from its fixed assets effectively in the long term. It may be worth further investigating the reasons behind these fluctuations to assess the company's overall operational performance and efficiency in utilizing its assets.