Sensient Technologies Corporation (SXT)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,430,740	1,422,220	1,367,390	1,317,440	1,303,950
Property, plant and equipment	US$ in thousands	505,277	483,193	446,478	445,493	437,179
Fixed asset turnover		2.83	2.94	3.06	2.96	2.98

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,430,740K ÷ $505,277K
= 2.83

The fixed asset turnover ratio measures how effectively a company is utilizing its fixed assets to generate revenue. A higher ratio indicates better efficiency in generating sales from its investments in fixed assets.

Sensient Technologies Corp. has shown a consistent trend in its fixed asset turnover ratio over the past five years, with values ranging from 2.88 to 3.09. This suggests that the company has generally been successful in generating revenue from its fixed assets during this period.

Although the ratio has fluctuated slightly year to year, it has remained relatively stable, indicating that Sensient Technologies Corp. has maintained a good level of efficiency in utilizing its fixed assets to generate sales. An average fixed asset turnover ratio of around 3.0 suggests that the company is efficiently utilizing its fixed assets to drive revenue generation.

Overall, based on the trend analysis of the fixed asset turnover ratio for Sensient Technologies Corp., it appears that the company has been effectively managing its fixed assets to generate sales over the past five years.