Synaptics Incorporated (SYNA)

Working capital 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
Revenue (ttm)	US$ in thousands	894,300	872,400	962,300	1,082,700	1,299,300	1,559,400	1,709,700	1,780,700	1,705,000	1,548,600	1,408,800	1,350,000	1,311,600	1,386,300	1,388,600	1,419,300	1,430,800	1,330,700	1,336,600	1,373,800
Total current assets	US$ in thousands	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	1,077,600	832,900	790,800	737,100
Total current liabilities	US$ in thousands	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	244,100	239,200	239,500	247,500
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

June 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $894,300K ÷ ($1,162,300K – $277,200K)
= 1.01

The working capital turnover ratio for Synaptics Incorporated has fluctuated over the recent quarters. The ratio measures how efficiently the company is utilizing its working capital to generate sales. A higher ratio indicates that the company is effectively using its current assets and liabilities to support its operations and sales.

From the data provided, we observe that the working capital turnover ratio has ranged from a low of 0.96 to a high of 3.34 over the past eight quarters. The ratio has shown a general decreasing trend from 3.34 in March 2021 to 1.01 in June 2024, indicating a decline in the efficiency of utilizing working capital to generate sales.

The fluctuations in the working capital turnover ratio may suggest changes in the company's operations, management of current assets and liabilities, or sales performance. A ratio below 1 may indicate that the company may not be efficiently using its working capital to generate sales, while a ratio above 1 signifies that the company is generating more sales relative to its working capital.

Investors and stakeholders should monitor the working capital turnover ratio over time to assess the company's operational efficiency and financial performance in utilizing its resources effectively. Additionally, further analysis and comparison with industry benchmarks would provide more insights into Synaptics Incorporated's financial health and operational effectiveness.