Synaptics Incorporated (SYNA)

Return on equity (ROE)

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Net income US$ in thousands -47,800 125,600 73,600 257,500 79,600
Total stockholders’ equity US$ in thousands 1,394,900 1,466,800 1,243,400 1,266,400 967,200
ROE -3.43% 8.56% 5.92% 20.33% 8.23%

June 30, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-47,800K ÷ $1,394,900K
= -3.43%

The analysis of Synaptics Incorporated's return on equity (ROE) over the period from June 30, 2021, to June 30, 2025, reveals significant fluctuations in profitability and equity utilization.

In the fiscal year ending June 30, 2021, the company reported an ROE of approximately 8.23%, indicating a moderate ability to generate profit relative to shareholder equity. This suggests a relatively conservative return profile during that period.

The following year, June 30, 2022, exhibited a substantial improvement, with ROE soaring to roughly 20.33%. This sharp increase points to a significant enhancement in net income relative to shareholder equity, reflecting higher operational efficiency or improved profitability margins.

However, in the subsequent fiscal year ending June 30, 2023, the ROE declined markedly to approximately 5.92%. This decrease suggests a decline in net income or an increase in shareholders' equity that outpaced earnings growth, thereby reducing overall profitability efficiency.

Looking further into the period ending June 30, 2024, there was a modest recovery in ROE to about 8.56%, indicating some stabilization or improvement in profit-generating capability but still below the highs achieved in 2022.

By June 30, 2025, the ROE turned negative, recorded at approximately -3.43%. This negative return indicates that net income was insufficient to cover shareholder equity, leading to a loss that eroded equity value and reflecting a decline in overall financial performance.

In summary, Synaptics Incorporated experienced a notable peak in ROE in 2022, followed by a decline and subsequent volatility, culminating in a negative return in 2025. These fluctuations highlight periods of intensified profitability interspersed with financial challenges, emphasizing the importance of further analysis into underlying factors such as net income dynamics, asset utilization, and external market influences affecting the company's profitability trends.