Synaptics Incorporated (SYNA)

Return on sales

The profitability ratios of Synaptics Incorporated over the period from June 30, 2021, to June 30, 2025, exhibit notable fluctuations that reflect varying operational and fiscal performance.

The gross profit margin experienced an initial increase from 45.63% in 2021 to a peak of 54.21% in 2022, indicating improved cost management or favorable product mix during that year. However, this margin declined slightly to 52.83% in 2023 and further decreased to 45.84% in 2024, before continuing a downward trend to 44.72% projected for 2025. The overall trend suggests a cooling in product profitability or increasing cost pressures affecting gross margins in recent years.

Operating profit margin demonstrated a more volatile pattern. It grew substantially from 10.97% in 2021 to 20.14% in 2022, signaling improved operational efficiency or higher-margin sales. Subsequently, it dwindled to 11.39% in 2023, followed by a transition into negative territory in 2024 at -7.90%, and further into -8.76% in 2025. This sharp decline indicates significant deterioration in operating profitability, possibly due to increased operating expenses, restructuring costs, or adverse market conditions impacting core operations.

Pretax margin exhibited a similar pattern, rising from 8.97% in 2021 to 18.42% in 2022, then declining to 9.30% in 2023. From 2024 onward, the margin falls into negative figures, reaching -12.99% in 2024 and -10.57% projected for 2025. The negative pretax margins in recent years exemplify a period of pre-tax losses, likely driven by operational challenges or extraordinary expenses.

Net profit margin follows a comparable trajectory. It increased from 5.94% in 2021 to 14.80% in 2022, indicating improved bottom-line profitability during that period. However, it declined sharply to 5.43% in 2023 and further into positive territory at 13.09% in 2024—possibly reflecting one-time gains or favorable tax treatments—before again turning negative to -4.45% in 2025. The negative net profit margin in the most recent year suggests the company has encountered significant net losses, impacted by factors such as reduced revenue, increased expenses, or non-recurring charges.

Overall, Synaptics Incorporated demonstrated a period of strong profitability in 2022, with significant declines thereafter, culminating in negative profitability indicators in 2024 and 2025. The trend indicates challenges in sustaining operational efficiency and profitability levels, emphasizing the need for strategic initiatives to address cost management and revenue generation in the upcoming periods.

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Return on investment

The analysis of Synaptics Incorporated’s profitability ratios over the period from June 30, 2021, to June 30, 2025, reveals notable fluctuations in the company's ability to generate earnings relative to its assets, capital, and equity.

Starting with the Operating Return on Assets (Operating ROA), there was a significant increase from 6.60% in 2021 to a peak of 12.26% in 2022, indicating improved operational efficiency and profitability relative to assets during that period. However, this was followed by a sharp decline to 5.91% in 2023, and a subsequent negative turn in 2024 and 2025, with values of -2.68% and -3.64% respectively. These downward trends suggest deteriorating operational performance and the potential impact of increased operating challenges or declines in core business segments.

The Return on Assets (ROA), which considers overall net income relative to total assets, also experienced growth from 3.57% in 2021 to 9.01% in 2022, reflecting enhanced profitability and asset utilization. Yet, similar to Operating ROA, ROA declined to 2.82% in 2023 and further dipped into negative territory in 2024 and 2025, registering at 4.45% and -1.85% respectively. The negative figures in the later years indicate that net income was insufficient to cover the assets deployed, reflecting diminished profitability or increased expenses.

Regarding the Return on Total Capital, a comparable pattern emerges. The ratio increased substantially from 15.47% in 2021 to a peak of 27.69% in 2022, supporting the view of improved profitability relative to total invested capital. Afterward, it experienced a decline to 14.60% in 2023 and turned negative in 2024 (-4.04%) with no meaningful recovery noted in 2025 (0.00%). Such negative ratios indicate that the company’s capital investments were not generating positive returns during these later periods.

Finally, the Return on Equity (ROE) demonstrated a similar trend, rising sharply from 8.23% in 2021 to 20.33% in 2022, suggesting that shareholders benefited from increased net income relative to their equity stake during that year. Nevertheless, the ROE declined considerably in 2023 to 5.92%, and further plummeted to 8.56% in 2024, before turning negative at -3.43% in 2025. The negative ROE indicates that, during the most recent period, shareholders’ equity was not generating profits and might have been eroded by losses.

Overall, the profitability ratios reflect a period of initial improvement through 2022, followed by a pronounced decline in subsequent years, culminating in negative profitability measures in 2024 and 2025. This pattern suggests significant operational and possibly financial challenges facing Synaptics in the later periods of the analysis.