Synaptics Incorporated (SYNA)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 4.19 | 5.32 | 4.53 | 4.52 | 4.89 | 4.96 | 4.42 | 3.86 | 3.03 | 3.17 | 2.94 | 2.47 | 1.50 | 3.95 | 2.98 | 2.41 | 4.41 | 3.48 | 3.30 | 2.98 |
| Quick ratio | 3.68 | 4.61 | 3.85 | 3.81 | 4.22 | 4.28 | 3.72 | 3.27 | 2.59 | 2.68 | 2.43 | 2.03 | 1.35 | 3.59 | 2.51 | 1.83 | 3.93 | 2.97 | 2.80 | 2.36 |
| Cash ratio | 3.16 | 3.93 | 3.35 | 3.36 | 3.59 | 3.47 | 2.87 | 2.50 | 1.89 | 1.92 | 1.57 | 1.14 | 1.06 | 2.74 | 1.41 | 0.95 | 3.13 | 1.97 | 1.77 | 1.42 |
The liquidity ratios of Synaptics Incorporated indicate consistently strong liquidity positions over the periods analyzed. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, has shown a generally increasing trend, reaching a high of 5.32 in the most recent quarter. This suggests that Synaptics has more than enough current assets to meet its short-term obligations.
The quick ratio, a more stringent indicator of liquidity as it excludes inventory from current assets, also demonstrates a healthy liquidity position for Synaptics. The company has maintained quick ratios above 2 in all periods, indicating a strong ability to cover short-term obligations without relying on inventory.
Moreover, the cash ratio, which is the most conservative measure of liquidity focusing solely on cash and cash equivalents, shows that Synaptics has a solid ability to cover its short-term liabilities with readily available cash. The cash ratio has consistently remained above 1 in all periods, with values exceeding 2 in many quarters.
Overall, the liquidity ratios suggest that Synaptics Incorporated has maintained a robust liquidity position, with ample resources to meet its short-term obligations and navigate potential financial challenges.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Synaptics Incorporated has shown fluctuations over the period under consideration. The cash conversion cycle is a key indicator of the efficiency with which the company manages its working capital.
From the data provided, we can observe that the cash conversion cycle peaked at 87.44 days in December 2022 and reached its lowest point at 45.94 days in March 2021. A shorter cash conversion cycle indicates that the company is able to turn its inventory into cash more quickly, thus improving liquidity and potentially reducing the need for external financing.
It is important to note that a longer cash conversion cycle can indicate inefficiencies in managing accounts receivable, inventory, and accounts payable. By effectively managing these components, the company can potentially reduce the cash conversion cycle and improve its overall financial health.
Overall, it is recommended that Synaptics Incorporated continues to monitor and optimize its cash conversion cycle to ensure efficient working capital management and improve its financial performance.