Sensient Technologies Corporation (SXT)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	1,368,050	1,306,830	1,242,290	300,671	286,546
Inventory	US$ in thousands	600,302	598,399	564,110	411,635	381,346
Inventory turnover		2.28	2.18	2.20	0.73	0.75

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,368,050K ÷ $600,302K
= 2.28

Sensient Technologies Corporation's inventory turnover has shown a significant improvement over the years, increasing from 0.75 in December 31, 2020 to 2.28 in December 31, 2024. This indicates that the company is managing its inventory more efficiently, with inventory being sold and replenished at a quicker rate.

A higher inventory turnover ratio is generally a positive sign as it suggests that the company is selling goods faster, avoiding excess inventory buildup and potential obsolescence. This improved efficiency in managing inventory can lead to better cash flow and profitability for the company.

Overall, the upward trend in Sensient Technologies Corporation's inventory turnover ratio demonstrates positive operational performance and effective inventory management practices.