Synaptics Incorporated (SYNA)

Financial leverage ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Total assets	US$ in thousands	2,584,400	2,825,000	2,611,400	2,858,100	2,226,800
Total stockholders’ equity	US$ in thousands	1,394,900	1,466,800	1,243,400	1,266,400	967,200
Financial leverage ratio		1.85	1.93	2.10	2.26	2.30

June 30, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,584,400K ÷ $1,394,900K
= 1.85

The financial leverage ratio of Synaptics Incorporated exhibits a consistent downward trend over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the ratio declined from 2.30 in 2021 to 2.26 in 2022, further decreasing to 2.10 in 2023, then to 1.93 in 2024, and reaching 1.85 in 2025.

This gradual reduction in the leverage ratio suggests a diminishing reliance on debt financing relative to equity over time. A decreasing leverage ratio may indicate that the company is reducing its financial risk by minimizing its debt levels or increasing its equity base. It could also reflect a strategic move towards a more conservative capital structure, potentially improving the company's resilience to economic fluctuations and decreasing the margin of financial leverage.

Overall, the trend signifies a deliberate shift toward lower leverage, pointing to a potentially conservative approach in managing capital structure, which may impact the firm's financial flexibility, risk profile, and cost of capital in coming periods.