Synaptics Incorporated (SYNA)

Return on total capital

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-59,500	-67,200	-17,300	41,800	181,200	335,700	391,000	421,500	371,500	294,600	232,400	213,300	164,300	113,900	92,800	68,800	67,000	21,500	7,200	-2,300
Long-term debt	US$ in thousands	966,900	967,700	968,700	969,600	972,000	972,900	973,900	974,800	975,700	982,600	983,500	394,500	394,400	394,400	100,000	100,000	100,000	482,000	477,400	472,800
Total stockholders’ equity	US$ in thousands	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	819,100	712,900	691,300	654,800
Return on total capital		-2.44%	-3.05%	-0.79%	1.92%	8.18%	14.63%	17.19%	18.33%	16.57%	13.76%	11.35%	15.28%	12.07%	8.58%	9.39%	7.33%	7.29%	1.80%	0.62%	-0.20%

June 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-59,500K ÷ ($966,900K + $1,466,800K)
= -2.44%

The return on total capital for Synaptics Incorporated has exhibited variability over the past several quarters. The return on total capital was negative in the most recent quarter, indicating that the company's capital investment did not generate positive returns during that period. This negative trend follows a declining pattern from the previous quarters.

In contrast, there were periods of positive returns on total capital in the earlier quarters, with the highest return of 18.33% achieved in the third quarter of 2022. However, the company experienced a fluctuating trend in returns on total capital over the last few years, with periods of both growth and decline.

Overall, the company's return on total capital has been inconsistent, with the most recent quarters showing negative returns, which may raise concerns about the efficiency of capital utilization. Monitoring and analyzing this ratio over time will be crucial for assessing the company's profitability and effectiveness in generating returns relative to the capital invested.