Synaptics Incorporated (SYNA)

Quick ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cash	US$ in thousands	876,900	924,700	824,000	836,300	763,400
Short-term investments	US$ in thousands	0	9,600	52,000	0	—
Receivables	US$ in thousands	142,400	163,900	322,100	228,300	195,300
Total current liabilities	US$ in thousands	277,200	260,100	463,400	786,700	244,100
Quick ratio		3.68	4.22	2.59	1.35	3.93

June 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($876,900K + $0K + $142,400K) ÷ $277,200K
= 3.68

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. A higher quick ratio indicates a stronger liquidity position.

Synaptics Incorporated's quick ratio has fluctuated over the past five years. As of June 30, 2024, the quick ratio stands at 3.68, showing a slight decrease from the previous year's value of 4.22. This indicates that Synaptics has $3.68 in liquid assets available to cover each dollar of its current liabilities.

Comparing the current quick ratio to earlier years, we observe variations in the company's liquidity position. In 2022, the quick ratio was 2.59, which was lower than the values in 2023 and 2020. This suggests that Synaptics may have improved its ability to meet short-term obligations in those years.

However, in 2021, the quick ratio was notably lower at 1.35, indicating a potential liquidity strain where the company had $1.35 in liquid assets for each dollar of current liabilities. The significant increase in the quick ratio to 3.93 in 2020 suggests a substantial improvement in liquidity from the previous year.

Overall, while the quick ratio can fluctuate due to various factors, investors and stakeholders should continue monitoring Synaptics' liquidity position over time to assess its ability to manage short-term obligations effectively.