Sensient Technologies Corporation (SXT)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,557,370 | 1,430,740 | 1,422,220 | 1,367,390 | 1,317,440 |
| Property, plant and equipment | US$ in thousands | 491,587 | 505,277 | 483,193 | 446,478 | 445,493 |
| Fixed asset turnover | 3.17 | 2.83 | 2.94 | 3.06 | 2.96 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,557,370K ÷ $491,587K
= 3.17
Fixed asset turnover is a financial ratio that measures the efficiency of a company in generating sales revenue from its investment in fixed assets.
Looking at the data for Sensient Technologies Corporation, we observe fluctuations in the fixed asset turnover ratio over the five-year period from 2020 to 2024. The ratios for each year are as follows:
- December 31, 2020: 2.96
- December 31, 2021: 3.06
- December 31, 2022: 2.94
- December 31, 2023: 2.83
- December 31, 2024: 3.17
The trend indicates that the company's ability to utilize its fixed assets to generate sales revenue has shown some variability. The ratio peaked in 2024 at 3.17, suggesting that the company was able to generate $3.17 in sales for each dollar of investment in fixed assets.
Overall, the fluctuations in the fixed asset turnover ratio for Sensient Technologies Corporation signify changes in operational efficiency and asset utilization over the years. It is essential for the company to analyze the reasons behind these fluctuations and work towards maintaining or improving the efficiency of its fixed asset utilization to drive sustainable growth and profitability.
Peer comparison
Dec 31, 2024