Synaptics Incorporated (SYNA)

The analysis of Synaptics Incorporated's solvency ratios based on the provided data indicates a consistent financial profile characterized by negligible or nonexistent leverage through debt. Specifically, the debt-to-assets, debt-to-capital, and debt-to-equity ratios are uniformly reported as zero across all observed periods from September 30, 2020, through June 30, 2025. These ratios suggest that the company maintained no reported long-term or short-term debt during this timeframe, implying that its assets are financed entirely through equity or internal resources, with no reliance on external borrowings.

Further supporting this conclusion, the financial leverage ratio exhibits values ranging roughly between 1.84 and 2.41. Since the leverage ratio is calculated as total assets divided by equity, these figures indicate that the total assets are approximately 1.84 to 2.41 times the equity, reflecting a relatively low level of debt relative to equity. The ratios fluctuate modestly over the period but do not suggest significant changes in financial structure or leverage.

Overall, the analysis demonstrates that Synaptics Incorporated operates with a conservative financial stance, characterized by the absence of debt and minimal reliance on leverage. This approach likely results in a strong solvency position, reducing financial risk and preserving capacity for operational flexibility.

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Coverage ratios

The interest coverage ratio for Synaptics Incorporated demonstrates a marked decline over the observed period, reflecting a progressively increasing difficulty in meeting interest obligations from operating earnings. Throughout most of 2020 and early 2021, the ratio remained relatively high and stable, with values indicating strong coverage—specifically, ratios of 10.76 on September 30, 2020, decreasing slightly to 8.92 by March 31, 2021. These figures imply that the company's operating earnings comfortably exceeded its interest expenses, suggesting a prudent financial position during this period.

However, starting in mid-2021, a notable downward trend emerges. By June 30, 2021, the ratio drops to 5.52, followed by intermittent fluctuations, with the ratio rising again to approximately 13.76 by September 30, 2022, indicating regained capacity to cover interest obligations. Despite this temporary improvement, the ratio begins to decline sharply thereafter, reaching 5.45 by June 30, 2023.

From September 30, 2023 onward, the ratio shifts from positive territory into negative values, with the ratio plummeting to -2.29 by December 31, 2023, and continuing to decrease through 2024 and into 2025, with projected figures indicating a worsening trend and negative ratios such as -5.92 by June 30, 2025. Negative interest coverage ratios suggest that operating earnings are insufficient to cover interest expenses, implying that the company is likely experiencing substantial financial distress and potential difficulties in servicing its debt obligations.

This trend reflects a deterioration in Synaptics' fiscal health and operational profitability, with increasing reliance on external financing or restructuring to manage its obligations. The consistent move into negative territory signals a significant erosion of earnings capacity in relation to interest expenses, raising concerns about long-term financial stability and solvency if current conditions persist.