Synaptics Incorporated (SYNA)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-76,400	-65,200	-56,300	-52,500	-59,300	-108,500	-56,900	7,100	154,300	316,400	375,700	407,200	347,700	274,200	212,300	193,200	146,700	214,200	201,600	177,600
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,394,900	1,387,000	1,376,100	1,467,300	1,466,800	1,235,400	1,220,300	1,204,300	1,243,400	1,321,100	1,300,400	1,325,100	1,266,400	1,157,700	1,063,900	1,001,400	967,200	932,600	888,000	838,700
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%

June 30, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-76,400K ÷ ($—K + $1,394,900K)
= -5.48%

The analysis of Synaptics Incorporated's return on total capital (ROTC) over the specified period reveals significant fluctuations in its profitability and operational efficiency. During the fiscal year ending September 30, 2020, ROTC stood at 21.18%, indicating a healthy return on the capital invested in the company. This upward trend continued into the following quarter, reaching 22.70% at the end of December 2020, and further increased to 22.97% by March 31, 2021.

In the subsequent quarters, ROTC experienced some volatility: it declined to 15.17% by June 30, 2021, signaling a reduction in capital efficiency, before rebounding to approximately 19.29% and maintaining around 19.95% in the following year, ending December 31, 2021. This stabilization persisted through March 2022, when the ROTC rose to 23.68%, and then to 27.46% by June 30, 2022, reaching a peak of 30.73% on September 30, 2022. These figures suggest periods of improved operational effectiveness and effective utilization of capital.

However, the subsequent quarters reveal a declining trend. ROTC at the end of December 2022 was 28.89%, slightly lower but still relatively strong. Moving into 2023, the figure dropped to 23.95% by March 31, and then experienced a sharp downward trajectory, dropping to 12.41% by June 30, 2023. The decline continued into the last quarters of 2023 and early 2024, with ROTC recording negative values of -4.66% at December 31, 2023, and further decreases to -8.78% by March 31, 2024, indicating a period of significant operational challenges and inability to generate returns from the company's total capital.

The negative ROTC persisted throughout the rest of 2024 and into 2025, with figures reaching as low as -5.48% in June 2025. This sustained negative return underscores a period of diminished profitability, potentially linked to adverse market conditions, strategic shifts, or internal operational issues. The overall trend from 2020 through 2025 reflects an initial phase of stable and improving returns, followed by a marked decline culminating in negative performance, indicating a critical deterioration in the company's capacity to convert its capital into profits over the recent period.