Synaptics Incorporated (SYNA)

Operating return on assets (Operating ROA)

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	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
Operating income (ttm)	US$ in thousands	-94,100	-65,600	-48,300	-51,000	-75,800	-100,100	-56,900	7,100	154,300	316,900	370,800	402,300	350,900	277,200	220,700	201,600	147,000	108,300	95,700	71,700
Total assets	US$ in thousands	2,584,400	2,554,300	2,527,500	2,791,200	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
Operating ROA		-3.64%	-2.57%	-1.91%	-1.83%	-2.68%	-3.94%	-2.21%	0.28%	5.91%	11.67%	13.61%	14.24%	12.28%	10.27%	8.60%	11.31%	6.60%	4.97%	5.34%	4.04%

June 30, 2025 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-94,100K ÷ $2,584,400K
= -3.64%

The operating return on assets (ROA) of Synaptics Incorporated demonstrated a notable upward trend from September 30, 2020, through September 30, 2022. Beginning at approximately 4.04% in September 2020, the metric increased steadily, peaking around 14.24% in September 2022. This period reflects a significant improvement in the company's ability to generate operating income relative to its total assets, indicating enhanced operational efficiency and profitability.

During this timeframe, the rising trend suggests the company experienced favorable market conditions, successful operational strategies, or both, contributing to higher profitability margins on its asset base. The peak in September 2022 marks the period of optimal asset utilization in the observed cycle.

However, following this peak, a downward trajectory begins, with the operating ROA decreasing to approximately 13.61% in December 2022, then further declining to around 11.67% in March 2023. This decline signals a reduction in operating efficiency or profitability relative to assets, possibly due to market challenges, increased costs, or strategic shifts.

From March 2023 onward, a sharp decline is observed, with the operating ROA turning negative by September 2023. Specifically, it falls to approximately -2.21% at the end of December 2023 and continues to decline to -2.68% in June 2024 and further negative territory reaching -3.94% in March 2024. The persistent negative figures indicate that the company's operating income is not sufficient to cover its asset base, reflecting operational difficulties or deteriorating profitability.

Overall, the trend indicates that Synaptics Incorporated experienced a significant period of operational improvement followed by a marked deterioration in operating efficiency and profitability beginning in late 2022 and intensifying into 2024. The transition from positive to negative operating ROA highlights substantial challenges affecting the company's capacity to generate operating income from its assets in recent periods.