Sensient Technologies Corporation (SXT)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	1,368,049	1,377,864	1,355,069	1,323,923	1,306,827	1,269,699	1,263,984	1,017,021	770,910	535,899	290,670	302,440	300,671	310,805	306,942	279,502	286,546	212,412	211,533	215,844
Inventory	US$ in thousands	600,302	580,847	553,415	568,547	598,399	587,024	588,459	573,706	564,110	501,382	452,161	422,837	411,635	392,231	360,240	350,294	381,346	401,046	388,647	384,157
Inventory turnover		2.28	2.37	2.45	2.33	2.18	2.16	2.15	1.77	1.37	1.07	0.64	0.72	0.73	0.79	0.85	0.80	0.75	0.53	0.54	0.56

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,368,049K ÷ $600,302K
= 2.28

The inventory turnover ratio for Sensient Technologies Corporation has shown a fluctuating trend over the past few years. It was observed to be on a declining trend from March 31, 2020, to September 30, 2021, with the ratio ranging from 0.53 to 0.85. However, from September 30, 2021, to March 31, 2024, there has been a consistent increase in the inventory turnover ratio, reaching a peak of 2.33 on March 31, 2024. This indicates that the company has been able to manage its inventory more efficiently during this period. Overall, the upward trend in the inventory turnover ratio suggests that Sensient Technologies Corporation has been effective in managing its inventory levels and converting them into sales, which is a positive indicator of operational efficiency.