Synaptics Incorporated (SYNA)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	-101,600	-108,500	-56,900	7,100	154,300	316,400	370,300	401,800	350,400	277,200	220,700	201,600	147,000	108,300	95,700	71,700	68,900	23,400	600	-8,900
Total assets	US$ in thousands	2,825,000	2,539,700	2,573,300	2,548,700	2,611,400	2,714,700	2,725,300	2,824,800	2,858,100	2,698,000	2,567,400	1,782,200	2,226,800	2,181,000	1,792,200	1,774,900	1,693,800	1,481,100	1,457,200	1,424,300
Operating ROA		-3.60%	-4.27%	-2.21%	0.28%	5.91%	11.66%	13.59%	14.22%	12.26%	10.27%	8.60%	11.31%	6.60%	4.97%	5.34%	4.04%	4.07%	1.58%	0.04%	-0.62%

June 30, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-101,600K ÷ $2,825,000K
= -3.60%

Operating return on assets (operating ROA) is a key ratio that measures a company's ability to generate earnings from its assets specifically related to its core operations. Synaptics Incorporated's operating ROA has fluctuated over the past several quarters.

From December 2020 to June 2021, the company saw a consistent improvement in its operating ROA, reaching a peak of 14.22% in September 2022. This upward trend indicates that Synaptics was effectively utilizing its assets to generate operating income during this period.

However, starting from December 2022, the operating ROA began to decline, dropping to -4.27% in March 2024. This negative trend suggests that Synaptics faced challenges in generating operating income relative to its assets.

The most recent data for June 2024 shows an operating ROA of -3.60%, indicating a continued struggle for the company to efficiently utilize its assets for core operations.

Overall, the declining trend in operating ROA for Synaptics Incorporated raises concerns about its profitability and operational efficiency. It may be important for the company to assess and address the factors contributing to this decline to improve its financial performance in the future.