Synaptics Incorporated (SYNA)
Return on total capital
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -59,300 | 181,500 | 352,300 | 140,500 | 179,900 |
| Long-term debt | US$ in thousands | 966,900 | 972,000 | 975,700 | 394,400 | 100,000 |
| Total stockholders’ equity | US$ in thousands | 1,466,800 | 1,243,400 | 1,266,400 | 967,200 | 819,100 |
| Return on total capital | -2.44% | 8.19% | 15.71% | 10.32% | 19.57% |
June 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-59,300K ÷ ($966,900K + $1,466,800K)
= -2.44%
Synaptics Incorporated's return on total capital has fluctuated over the past five years. In 2020, the company achieved a relatively high return on total capital of 19.57%, indicating strong efficiency in generating profits from its total capital employed. This was followed by a slight decrease to 10.32% in 2021, but the return remained in the double digits, reflecting continued profitability.
However, in 2022, there was a significant increase in return on total capital to 15.71%, suggesting improved capital efficiency and profitability. The trend reversed in 2023 with a return of 8.19%, indicating a decline in the company's ability to generate sufficient profits from its total capital.
The latest data from June 30, 2024, shows a negative return on total capital of -2.44%, indicating a concerning result where the company's capital is not generating returns to cover the cost of capital. This negative return raises questions about the company's operational performance and efficiency in utilizing its capital.
Overall, the fluctuating trend in Synaptics Incorporated's return on total capital highlights the importance of closely monitoring the company's capital management strategies and operational efficiency to ensure sustainable and profitable growth in the future.
Peer comparison
Jun 30, 2024