Sensient Technologies Corporation (SXT)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	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
Inventory turnover		2.28	2.37	2.45	2.33	2.18	2.16	2.15	1.77	1.37	1.07	0.64	0.72	0.73	0.79	0.85	0.80	0.75	0.53	0.54	0.56
DOH	days	160.16	153.87	149.07	156.75	167.13	168.75	169.93	205.90	267.09	341.49	567.79	510.30	499.70	460.62	428.38	457.45	485.76	689.14	670.61	649.62

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.28
= 160.16

The Days of Inventory on Hand (DOH) for Sensient Technologies Corporation has shown fluctuations over the analyzed period. Starting at a relatively high level of around 650 days in March 2020, the DOH increased further by June 2020 and September 2020. However, there was a notable decrease to 485.76 days by December 2020, reflecting a potential improvement in inventory management efficiency.

The trend continued positively in the following quarters, with decreasing DOH figures seen until March 2023. During this period, inventory holding periods consistently decreased, suggesting the company was managing its inventory effectively. This trend indicates better control over production levels and stock rotation practices.

However, a slight uptick in DOH was observed by June 2023, which continued through the next quarter, indicating a potential increase in inventory levels relative to sales. This may warrant closer monitoring to ensure that inventory levels remain optimized to meet demand without incurring unnecessary holding costs.

By the end of December 2024, the DOH had stabilized around 160 days, signifying a balance between maintaining adequate inventory levels and efficient inventory turnover. Overall, the analysis suggests that Sensient Technologies Corporation has made progress in managing its inventory efficiently over the reviewed period, although periodic monitoring and adjustments may be necessary to sustain optimal levels.