Sensient Technologies Corporation (SXT)

Fixed asset turnover

		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	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	1,430,648	1,432,436	1,432,305	1,432,967	1,422,547	1,416,171	1,400,017	1,363,899	1,367,431	1,361,130	1,339,949	1,326,926	1,317,174	1,299,821	1,292,466	1,306,970	1,302,766	1,308,327	1,332,940	1,356,440
Property, plant and equipment	US$ in thousands	505,277	506,549	504,981	493,779	483,193	440,439	443,675	445,251	446,478	437,789	442,022	442,080	445,493	429,509	423,294	422,995	437,179	469,758	481,163	486,026
Fixed asset turnover		2.83	2.83	2.84	2.90	2.94	3.22	3.16	3.06	3.06	3.11	3.03	3.00	2.96	3.03	3.05	3.09	2.98	2.79	2.77	2.79

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,430,648K ÷ $505,277K
= 2.83

The fixed asset turnover ratio for Sensient Technologies Corp. has been relatively stable over the past eight quarters, ranging from 2.87 to 3.24. This ratio measures the company's ability to generate sales from its investment in fixed assets, indicating how efficiently the company is utilizing its fixed assets to generate revenue.

A ratio above 1 signifies that the company is generating more revenue per dollar of fixed assets, which is generally a positive indicator of operational efficiency. In this case, Sensient Technologies Corp. has consistently maintained a fixed asset turnover ratio above 2, indicating efficient utilization of its fixed assets.

The slight fluctuations in the ratio over the quarters suggest that the company's ability to generate sales from its fixed assets has been relatively consistent. However, the downward trend from Q4 2022 to Q1 2023 might indicate a slight decrease in efficiency during that period.

Overall, the fixed asset turnover ratio for Sensient Technologies Corp. reflects a healthy level of operational efficiency in utilizing its fixed assets to generate revenue, despite some minor fluctuations in the ratio over the quarters.