Synaptics Incorporated (SYNA)

Interest coverage

		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
Interest expense (ttm)	US$ in thousands	65,100	65,000	64,500	60,600	55,700	50,700	43,800	31,200	21,600	25,900	12,400	21,900	29,300	9,100	21,300	21,000	19,900	32,300	29,200	24,700
Interest coverage		-0.91	-1.03	-0.27	0.69	3.25	6.62	8.93	13.51	17.20	11.37	18.74	9.74	5.61	12.52	4.36	3.28	3.37	0.67	0.25	-0.09

June 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-59,500K ÷ $65,100K
= -0.91

The interest coverage ratio of Synaptics Incorporated has exhibited significant fluctuations over the past few quarters. The ratio indicates the company's ability to cover its interest expenses with its operating income. A ratio below 1 suggests that the company is not generating enough operating income to cover its interest expenses.

From December 2019 to March 2020, the interest coverage ratio was below 1, indicating a potential concern regarding the company's ability to meet its interest obligations. However, there was a significant improvement in the ratio from March 2020 to June 2021, with the ratio consistently above 3, suggesting a healthier financial position.

In the most recent quarters, the interest coverage ratio has once again fallen below 1, indicating a potential strain on the company's ability to cover its interest expenses with its operating income. It is important for investors and stakeholders to closely monitor this ratio to assess the company's financial health and its ability to meet its debt obligations.