Synaptics Incorporated (SYNA)

Cash conversion cycle

		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
Cash conversion cycle	days	70.88	81.83	67.64	67.06	83.44	83.89	87.44	76.59	78.55	74.06	80.42	64.42	57.01	45.94	64.96	74.19	66.71	68.74	64.84	75.16

June 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 54.89 + 58.12 – 42.13
= 70.88

The cash conversion cycle of Synaptics Incorporated has fluctuated over the periods analyzed. The company's ability to convert its resources efficiently into cash is reflected in this metric.

In the most recent period as of June 30, 2024, the cash conversion cycle stood at 70.88 days, indicating that it takes approximately 71 days for Synaptics to convert its investments in inventory and accounts receivable into cash from sales.

The trend over the previous quarters shows some variability, with the cycle peaking at 87.44 days on Dec 31, 2022, and reaching its lowest point at 45.94 days on Mar 31, 2021.

A longer cash conversion cycle can indicate inefficiencies in managing inventory or collecting receivables, potentially tying up cash and impacting the company's liquidity. Conversely, a shorter cycle may suggest effective inventory management and rapid collection of receivables, contributing to improved cash flow.

It is essential for Synaptics Incorporated to closely monitor and manage its cash conversion cycle to ensure optimal utilization of resources and maintain healthy liquidity levels for sustained operations and growth.