Sensient Technologies Corporation (SXT)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	1,550,306	1,516,112	1,481,034	1,445,470	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
Property, plant and equipment	US$ in thousands	491,587	494,619	491,140	498,188	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
Fixed asset turnover		3.15	3.07	3.02	2.90	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

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,550,306K ÷ $491,587K
= 3.15

Fixed asset turnover is a financial ratio that measures how efficiently a company generates sales from its fixed assets. A higher fixed asset turnover indicates better utilization of fixed assets to generate revenue.

Analyzing Sensient Technologies Corporation's fixed asset turnover over the period provided, we observe a generally stable trend with some fluctuations. The ratio ranged from 2.83 to 3.22 during the period from March 31, 2020, to December 31, 2024.

Specifically, Sensient Technologies Corporation experienced a peak fixed asset turnover of 3.22 on September 30, 2022, indicating a high level of sales relative to its fixed assets at that time. This may suggest efficient management of its fixed assets to drive revenue generation.

On the other hand, there were periods where the fixed asset turnover decreased, such as on December 31, 2022, when the ratio dropped to 2.94. However, it rebounded in subsequent periods.

Overall, the trend in Sensient Technologies Corporation's fixed asset turnover indicates that the company has been relatively effective in utilizing its fixed assets to generate sales revenue, with some minor fluctuations over the period under review.