Sensient Technologies Corporation (SXT)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	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	204,317	256,880	258,577	263,466
Inventory	US$ in thousands	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	422,517	470,136	462,108	468,324
Inventory turnover		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	0.48	0.55	0.56	0.56

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,306,827K ÷ $598,399K
= 2.18

Sensient Technologies Corp.'s inventory turnover has shown a declining trend over the past eight quarters. The inventory turnover ratio has decreased from 2.16 in Q1 2022 to 1.66 in Q4 2023. This indicates that the company is taking longer to sell its inventory compared to previous periods. A lower inventory turnover can suggest potential issues such as overstocking, slow-moving inventory, or changes in demand for the company's products. Management may need to closely monitor inventory levels and sales patterns to address these concerns and improve operational efficiency. Additionally, a declining inventory turnover ratio can impact the company's working capital management and overall profitability.