Synaptics Incorporated (SYNA)

Working capital 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
Revenue (ttm)	US$ in thousands	1,074,300	1,038,900	1,009,600	979,400	959,400	939,300	1,028,600	1,144,700	1,355,100	1,604,200	1,747,700	1,815,100	1,739,700	1,591,100	1,446,800	1,383,900	1,339,600	1,289,400	1,291,700	1,322,400
Total current assets	US$ in thousands	751,900	712,600	890,500	1,139,900	1,162,300	1,122,500	1,147,400	1,108,600	1,272,000	1,334,300	1,324,000	1,411,800	1,403,400	1,247,200	1,074,700	749,400	1,179,700	1,090,800	671,600	620,000
Total current liabilities	US$ in thousands	270,900	247,500	229,800	253,900	277,200	210,900	253,300	245,500	260,100	268,900	299,300	365,300	463,400	393,000	365,200	303,500	786,700	276,100	225,500	257,500
Working capital turnover		2.23	2.23	1.53	1.11	1.08	1.03	1.15	1.33	1.34	1.51	1.71	1.73	1.85	1.86	2.04	3.10	3.41	1.58	2.90	3.65

June 30, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,074,300K ÷ ($751,900K – $270,900K)
= 2.23

The working capital turnover ratio of Synaptics Incorporated demonstrates notable fluctuations over the analyzed period. Initially, the ratio was relatively high at 3.65 as of September 30, 2020, indicating that the company efficiently utilized its working capital to generate sales during that quarter. Throughout 2020, the ratio experienced a decline, reaching 2.90 by December 31, 2020, and continuing to decrease more sharply to 1.58 by March 31, 2021, which suggests a reduction in the efficiency of working capital utilization or a shift in sales dynamics relative to working capital.

Entering 2021, the ratio recovered somewhat to 3.41 at June 30, but then declined again to 3.10 by September 30. The downward trend persisted into late 2021 and through 2022, with the ratio decreasing from 2.04 as of December 31, 2021, to 1.73 by September 30, 2022. This sustained decline indicates that over this period, the company was less effective at generating sales per unit of working capital.

Throughout 2022 and into early 2023, the ratio continued its downward trajectory, reaching a low of 1.03 as of March 31, 2024. The diminished ratio implies a significant decline in working capital efficiency, potentially reflecting changes such as increased working capital relative to sales, reduced sales effectiveness, or operational shifts impacting the company's short-term asset management.

However, starting in late 2024 and into mid-2025, there is a discernible upward trend. The ratio increased from 1.15 at December 31, 2024, to 2.23 by March 31, 2025, maintaining this level through June and into September 2025, both at 2.23. This rebound suggests an improvement in working capital utilization efficiency, possibly driven by operational adjustments, improved sales efficiency, or optimized working capital management.

Overall, the historical pattern of Synaptics' working capital turnover indicates periods of decline followed by partial recovery, reflecting shifts in operational efficiency, sales performance relative to working capital, and overall management effectiveness in managing short-term assets across the analyzed timeframe.