Synaptics Incorporated (SYNA)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	85.73	85.03	79.78	82.41	79.48	81.39	84.72	83.25	78.34	74.57	82.49	80.40	77.76	71.64	69.78	45.66	41.09	34.79	35.61	54.25
Days of sales outstanding (DSO)	days	44.27	46.38	52.96	50.61	54.63	56.69	45.35	38.07	44.50	49.92	53.53	57.41	67.83	68.43	78.76	60.21	62.20	66.16	70.45	62.88
Number of days of payables	days	60.54	57.58	56.08	57.40	61.01	50.57	56.21	40.39	26.15	30.68	38.43	56.02	64.97	66.59	70.40	56.47	48.91	53.67	36.25	36.55
Cash conversion cycle	days	69.47	73.82	76.67	75.62	73.11	87.51	73.86	80.93	96.69	93.82	97.58	81.79	80.61	73.49	78.13	49.40	54.39	47.28	69.81	80.58

June 30, 2025 calculation

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

The cash conversion cycle (CCC) of Synaptics Incorporated from September 2020 to June 2025 exhibits notable fluctuations over the analyzed period, reflecting various changes in operational efficiency and working capital management.

Initially, in September 2020, the CCC was approximately 80.58 days. Over the subsequent quarters, there was a significant decrease, reaching a low of approximately 47.28 days by March 2021. This reduction indicates an improvement in the company's ability to convert inventory and receivables into cash more quickly, possibly due to enhanced operational efficiencies or tighter working capital controls during this period.

From March 2021 to September 2021, the CCC remained relatively low, around 49.40 days, maintaining a favorable liquidity profile. However, starting in late 2021, a rising trend appears, with CCC increasing to approximately 78.13 days by the end of December 2021. This upward movement persists into 2022, peaking at approximately 97.58 days in December 2022, suggesting a slowdown in cash conversion efficiency, potentially due to extended inventory holding periods or longer receivable collections.

Throughout 2023, the CCC exhibits some volatility, decreasing slightly to about 73.86 days by the end of December 2023 but then rising again in March 2024 to roughly 87.51 days. In late 2024 and mid-2025, the CCC shows signs of stabilization, with values around 73.11 days in June 2024 and gradually approaching 69.47 days by June 2025. This downward trend toward the latter part of the period may indicate efforts to optimize working capital and improve cash flow timing.

Overall, the company's cash conversion cycle demonstrates a pattern of initial improvement followed by a period of elongation, and subsequently, a partial recovery. These fluctuations suggest shifts in operational management, inventory control, and receivables collection strategies over the analyzed timeframe. The recent trends toward shorter cycles may point to ongoing efforts to enhance liquidity and operational efficiency.