Sensient Technologies Corporation (SXT)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,306,830	1,242,290	300,671	286,546	296,663
Inventory	US$ in thousands	598,399	564,110	411,635	381,346	422,517
Inventory turnover		2.18	2.20	0.73	0.75	0.70

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,306,830K ÷ $598,399K
= 2.18

Sensient Technologies Corp.'s inventory turnover has shown a declining trend over the past five years, from 2.15 in 2019 to 1.66 in 2023. This indicates that the company is taking more time to sell its inventory in recent years. A lower inventory turnover may suggest issues such as overstocking, slow-moving inventory, or changes in consumer demand impacting sales. It is essential for the company to effectively manage its inventory levels to improve efficiency and profitability. Further analysis of the reasons behind the decreasing trend in inventory turnover would be beneficial in identifying and addressing potential operational challenges.