Synaptics Incorporated (SYNA)

Cash conversion cycle

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Days of inventory on hand (DOH)	days	85.73	80.08	78.34	77.76	41.09
Days of sales outstanding (DSO)	days	44.27	54.63	44.50	67.83	62.20
Number of days of payables	days	60.54	61.47	26.15	64.97	48.91
Cash conversion cycle	days	69.47	73.25	96.69	80.61	54.39

June 30, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 85.73 + 44.27 – 60.54
= 69.47

The analysis of Synaptics Incorporated’s cash conversion cycle (CCC) over the period from June 30, 2021, to June 30, 2025, reveals notable fluctuations and an overall trend in operational efficiency.

As of June 30, 2021, the CCC stood at approximately 54.39 days, indicating the company was able to convert its investments in inventory and accounts receivable intocash relatively efficiently. However, by June 30, 2022, the CCC increased substantially to around 80.61 days, suggesting a lengthening of the cycle, which may reflect slower collection periods, extended inventory turnover, or a combination of both operational factors.

The trend continued into June 30, 2023, with the CCC rising further to approximately 96.69 days, nearing a three-month cycle. This increase could imply challenges in receivables collection or inventory management, potentially impacting liquidity and working capital requirements.

Following this peak, there was a noticeable reduction in the CCC to approximately 73.25 days as of June 30, 2024. This contraction indicates an improvement in the company's efficiency in converting receivables and inventory into cash, possibly due to targeted operational adjustments or improved receivables management.

By June 30, 2025, the CCC further decreased to approximately 69.47 days, suggesting continued progress toward more efficient cash conversion. While still elevated compared to the 2021 figures, the downward trend implies an ongoing effort to streamline operations and reduce working capital cycles.

In summary, the cash conversion cycle for Synaptics Incorporated experienced a significant increase during 2021-2023, followed by a recovery phase in the subsequent years. The fluctuating cycle underscores periods of operational challenges and subsequent efficiency improvements, with recent figures indicating progress toward optimizing cash flow management.