Synaptics Incorporated (SYNA)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 44.72% | 45.09% | 45.85% | 45.92% | 45.43% | 45.52% | 47.60% | 49.56% | 52.83% | 54.91% | 55.06% | 55.13% | 54.21% | 53.28% | 51.80% | 48.76% | 45.63% | 43.62% | 42.00% | 41.70% |
| Operating profit margin | -8.76% | -6.31% | -4.78% | -5.21% | -7.90% | -10.66% | -5.53% | 0.62% | 11.39% | 19.75% | 21.22% | 22.16% | 20.17% | 17.42% | 15.25% | 14.57% | 10.97% | 8.40% | 7.41% | 5.42% |
| Pretax margin | -10.57% | -11.97% | -11.92% | -12.08% | -12.99% | -14.07% | -7.94% | -1.60% | 9.30% | 17.80% | 19.75% | 20.80% | 18.42% | 15.52% | 12.77% | 11.95% | 8.97% | 14.75% | 14.04% | 12.18% |
| Net profit margin | -4.45% | 15.90% | 16.73% | 16.14% | 13.09% | -11.30% | -7.54% | -4.07% | 5.43% | 11.21% | 13.41% | 15.53% | 14.80% | 12.17% | 9.85% | 8.86% | 5.94% | 11.68% | 10.98% | 8.47% |
The profitability ratios of Synaptics Incorporated over the analyzed period reflect a trajectory of initial growth followed by challenges in sustaining profit margins.
Gross Profit Margin:
From September 30, 2020, through March 31, 2022, the gross profit margin exhibited a steady upward trend, increasing from 41.70% to a peak of 55.13%. This consistent improvement suggests enhanced efficiency in manufacturing and cost management, leading to higher revenue retention after direct costs. However, post-March 2022, the gross margin began a gradual decline, declining to approximately 45.43% by June 30, 2024. The subsequent period shows slight fluctuations, with margins stabilizing around the high 40s percentage range. The decline in gross margin after 2022 may indicate increased cost pressures or product mix changes, which impacted overall profitability at the gross level.
Operating Profit Margin:
Operating margins experienced a robust increase during 2020 and 2021, rising from 5.42% to a peak of 22.16%. This progression reflects improvements not only in gross profit but also in controlling operating expenses and operational efficiency. Yet, starting in late 2022, operating margins deteriorated sharply, turning negative by the end of 2023 and remaining in the negative territory through June 2025. This decline signals operational challenges, possibly due to increased operating costs, restructuring expenses, or declining revenue, leading to reduced or negative operating profitability.
Pre-Tax Margin:
Pre-tax margins follow a similar pattern, increasing from 12.18% to a high of 20.80% in September 2022, indicating strong earnings before taxes during that period. Nevertheless, the trend reverses significantly after 2022, with margins declining into negative figures starting in late 2023 and extending further negative in subsequent periods, reaching approximately -11.97% by March 2025. The negative pre-tax margins are indicative of substantial pre-tax losses, reflecting operational difficulties and possibly non-recurring expenses or impairments impacting profitability.
Net Profit Margin:
Net profit margins closely mirror trends observed in other profitability ratios. From a peak of 16.73% as of December 31, 2024, the net margin begins to decline, becoming negative in early 2025, with figures reaching approximately -4.45%. Historically, the company experienced periods of solid profitability in 2020 and 2021, but the recent trajectory indicates significant profitability pressures, with losses materializing at the net income level as well.
Summary:
Overall, Synaptics' profitability ratios illustrate a period of strong financial performance during 2020 and 2021, characterized by high gross, operating, pre-tax, and net profit margins. However, from late 2022 onward, a noticeable decline set in. Operating and pre-tax margins turned negative by late 2023, with net profitability following suit by early 2025. This shift suggests deteriorating operational efficiency, increased costs, or external market pressures adversely affecting the company's ability to sustain prior profitability levels. The margins’ reversal indicates challenges in maintaining profitability amidst changing business conditions, necessitating further analysis of underlying operational factors.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | -1.85% | 6.47% | 6.68% | 5.66% | 4.45% | -4.18% | -3.02% | -1.83% | 2.82% | 6.63% | 8.60% | 9.98% | 9.01% | 7.18% | 5.55% | 6.88% | 3.57% | 6.91% | 7.91% | 6.31% |
| Return on total capital | -5.48% | -4.70% | -4.09% | -3.58% | -4.04% | -8.78% | -4.66% | 0.59% | 12.41% | 23.95% | 28.89% | 30.73% | 27.46% | 23.68% | 19.95% | 19.29% | 15.17% | 22.97% | 22.70% | 21.18% |
| Return on equity (ROE) | -3.43% | 11.91% | 12.27% | 10.77% | 8.56% | -8.59% | -6.36% | -3.87% | 5.92% | 13.62% | 18.03% | 21.27% | 20.33% | 16.72% | 13.39% | 12.24% | 8.23% | 16.15% | 15.97% | 13.35% |
The profitability ratios of Synaptics Incorporated, as depicted in the provided data, demonstrate significant fluctuations across the analyzed periods, reflecting the company's varying performance and operational efficiency over time.
Operating Return on Assets (Operating ROA):
The Operating ROA exhibits a notable upward trajectory from approximately 4.04% as of September 2020 to a peak of 14.24% in September 2022. This increase indicates an improvement in the company's ability to generate operating income relative to its assets. However, subsequent periods reveal a sharp decline, with the ratio turning negative and reaching -2.21% in December 2023 and continuing downward to -3.94% in March 2024, and further to -3.64% by June 2025. This downturn suggests deteriorating operational efficiency or increasing asset base without proportionate income growth in recent periods.
Return on Assets (ROA):
The ROA displays a similar pattern, rising from 6.31% in September 2020 to a high of 9.98% as of September 2022, before declining significantly in 2023 and 2024. The ratio dips into negative territory in March 2024 and remains below zero through the rest of the period, hitting -4.18% in March 2024 and hovering around -1.85% at June 2025. These trends signify waning overall profitability relative to total assets, indicating challenges in generating net income.
Return on Total Capital:
This ratio demonstrates a peak of approximately 30.73% in September 2022, followed by a consistent decline, turning negative by March 2024 and remaining negative through June 2025. The downward trend reflects decreased efficiency in utilizing both debt and equity capital to generate returns, potentially attributable to declining operating margins or increased capital costs.
Return on Equity (ROE):
ROE experienced an initial growth, reaching a high of 21.27% in September 2022, before reversing trend sharply downwards. Negative values are observed starting in September 2023, with the ratio reaching -6.36% in December 2023 and declining further to -8.59% in March 2024. The subsequent increase to 12.27% in December 2024 is followed by a slight decrease to 11.91% in March 2025, yet the overall trend through the period indicates substantial volatility and a significant deterioration in profitability from an equity holders’ perspective.
Summary:
Overall, these profitability ratios indicate that Synaptics achieved strong operational and net income performance through 2021 and parts of 2022, with peak ratios observed around September 2022. However, from late 2022 onwards, there is a clear and sustained decline in profitability metrics, with ratios turning negative in 2024, signaling potential challenges such as declining sales, increased costs, asset inefficiencies, or market pressures. The negative shifts across all profitability measures suggest deteriorating financial performance in recent periods, emphasizing the need for strategic initiatives to restore profitability and operational efficiency.