Synaptics Incorporated (SYNA)

Cash conversion cycle

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Days of inventory on hand (DOH)	days	56.61	59.50	61.49	33.17	38.09
Days of sales outstanding (DSO)	days	58.13	46.09	68.58	63.48	50.30
Number of days of payables	days	43.45	19.86	51.38	39.48	22.63
Cash conversion cycle	days	71.29	85.73	78.69	57.17	65.75

June 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 56.61 + 58.13 – 43.45
= 71.29

The cash conversion cycle of Synaptics Incorporated has shown some fluctuations over the past five years. In the most recent period ended on June 30, 2024, the cash conversion cycle decreased to 71.29 days from 85.73 days in the previous year. This indicates that the company has been able to more efficiently convert its investments in raw materials and production into cash.

Looking further back, in June 30, 2022, the cash conversion cycle was 78.69 days, which was slightly higher compared to the current year. However, in June 30, 2021, the company had a lower cash conversion cycle of 57.17 days, indicating a more efficient management of inventory, accounts receivable, and accounts payable during that period. In June 30, 2020, the cash conversion cycle increased to 65.75 days, suggesting that the company took longer to convert its resources into cash than in the previous year.

Overall, the trend in the cash conversion cycle of Synaptics Incorporated shows some variability, with fluctuations indicating changes in the efficiency of managing working capital over the years. It is crucial for the company to continue monitoring and improving its cash conversion cycle to optimize its liquidity and operational efficiency.