Synaptics Incorporated (SYNA)

Return on total capital

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Earnings before interest and tax (EBIT)	US$ in thousands	—	-59,300	181,500	350,700	149,600
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,394,900	1,466,800	1,243,400	1,266,400	967,200
Return on total capital		0.00%	-4.04%	14.60%	27.69%	15.47%

June 30, 2025 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,394,900K)
= 0.00%

The analysis of Synaptics Incorporated's return on total capital (ROTC) over the specified period reveals fluctuations that provide insights into the company's operational performance and capital efficiency. As of June 30, 2021, the ROTC was reported at 15.47%, indicating a moderately efficient utilization of total capital to generate earnings. The subsequent year, June 30, 2022, saw a significant increase to 27.69%, reflecting a substantial improvement in the company's ability to generate returns relative to its total capital base.

However, this positive trend was not sustained into the following year. By June 30, 2023, the ROTC declined sharply to 14.60%, bringing the overall performance closer to the 2021 level and suggesting some erosion in capital efficiency or operational challenges. The decline continued into the year ending June 30, 2024, with the ROTC turning negative at -4.04%. This negative figure indicates that, during this period, the company was not only failing to generate returns on its total capital but was also likely experiencing losses or significant inefficiencies.

Looking further ahead, for the year ending June 30, 2025, the ROTC was reported at 0.00%, implying a break-even scenario where the company’s operating returns exactly offset its total capital costs. This stabilization at zero suggests a period of no net gain or loss from capital investment, though it also underscores challenges in achieving profitable growth or operational improvements.

Overall, the trend in Synaptics' ROTC over these years demonstrates considerable volatility. The initial upward trend and substantial peak in 2022 suggest periods of strong operational performance, while the subsequent declines highlight struggles with maintaining such performance levels. The shift to negative territory and finally to break-even status point to potential financial or operational difficulties that have impacted the company's ability to effectively leverage its total capital for profitable returns in recent years.