Synaptics Incorporated (SYNA)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 49.19% | 55.16% | 55.01% | 46.56% | 38.32% |
| Operating profit margin | -11.36% | 11.89% | 20.44% | 11.20% | 4.86% |
| Pretax margin | -13.94% | 9.71% | 18.79% | 8.46% | 11.11% |
| Net profit margin | 14.05% | 5.67% | 15.02% | 6.06% | 8.38% |
The profitability ratios of Synaptics Incorporated have fluctuated over the past five years. The gross profit margin has shown a general decreasing trend from 38.32% in 2020 to 49.19% in 2024, indicating an improvement in managing production costs and generating revenue.
However, the operating profit margin has been inconsistent, with a significant decline in 2022 and a negative margin of -11.36% in 2024, suggesting challenges in controlling operating expenses and maintaining profitability from core business operations.
Similarly, the pretax margin has also exhibited volatility, with a notable decrease in 2024 to -13.94%. This indicates that the company may be facing challenges in managing pre-tax expenses efficiently and optimizing income before tax deductions.
On a positive note, the net profit margin improved from 6.06% in 2021 to 14.05% in 2024, suggesting effective management of tax obligations and other costs to enhance overall profitability.
In conclusion, while Synaptics Incorporated has shown improvement in its gross and net profit margins over the years, the declining trend in operating and pretax margins raises concerns about the company's operational efficiency and cost management strategies that may require further attention and strategic adjustments.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -3.60% | 5.91% | 12.26% | 6.60% | 4.07% |
| Return on assets (ROA) | 4.45% | 2.82% | 9.01% | 3.57% | 7.01% |
| Return on total capital | -2.44% | 8.19% | 15.71% | 10.32% | 19.57% |
| Return on equity (ROE) | 8.56% | 5.92% | 20.33% | 8.23% | 14.50% |
The profitability ratios for Synaptics Incorporated have shown some fluctuations over the past five years.
1. Operating Return on Assets (Operating ROA):
- There was a decline in the Operating ROA from 5.91% in 2023 to -3.60% in 2024. This indicates that the company's operating profits relative to its assets have deteriorated significantly.
- The negative value in 2024 suggests that the company's operating income was insufficient to cover the assets utilized to generate that income.
2. Return on Assets (ROA):
- The ROA has also fluctuated over the years, with a peak of 9.01% in 2022 and a low of 2.82% in 2023.
- The 2024 ROA of 4.45% represents a moderate increase compared to the previous year, suggesting that the company's net income relative to its total assets improved.
3. Return on Total Capital:
- The Return on Total Capital experienced a significant decrease from 15.71% in 2022 to -2.44% in 2024.
- The negative value in 2024 indicates that the company's return was insufficient to cover its total capital employed, which could raise concerns regarding the company's capital efficiency.
4. Return on Equity (ROE):
- The ROE peaked at 20.33% in 2022 and declined to 8.56% in 2024.
- The 2024 ROE indicates that the company's net income relative to shareholders' equity improved compared to the previous year, but it still remains lower than the levels seen in 2022 and 2023.
Overall, the profitability ratios suggest that Synaptics Incorporated has faced challenges in maintaining consistent profitability performance in recent years. The negative values in Operating ROA and Return on Total Capital in 2024 warrant further investigation into the company's operational efficiency and capital management strategies.