Synaptics Incorporated (SYNA)

Financial leverage ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Total assets	US$ in thousands	2,825,000	2,611,400	2,858,100	2,226,800	1,693,800
Total stockholders’ equity	US$ in thousands	1,466,800	1,243,400	1,266,400	967,200	819,100
Financial leverage ratio		1.93	2.10	2.26	2.30	2.07

June 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,825,000K ÷ $1,466,800K
= 1.93

The financial leverage ratio for Synaptics Incorporated has exhibited a trend of fluctuation over the past five years, ranging from 2.30 in June 2021 to 1.93 in June 2024. The ratio measures the company's use of debt financing relative to equity, indicating how much of its operations are funded through debt. A higher ratio suggests a greater reliance on debt, which can potentially amplify returns but also increase financial risk.

The decreasing trend in the financial leverage ratio from 2.30 in 2021 to 1.93 in 2024 indicates a reduction in the company's debt levels relative to equity over the period. This may imply a shift towards a more conservative financing structure, potentially reducing financial risk and increasing financial stability. However, it's important to consider the context of the industry, business cycle, and company strategy when interpreting changes in the financial leverage ratio. Further analysis of the company's debt management and capital structure strategies would provide deeper insights into its financial health and future prospects.