Sensient Technologies Corporation (SXT)
Number of days of payables
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 9.84 | 9.97 | 8.73 | 2.40 | 2.67 | |
| Number of days of payables | days | 37.10 | 36.62 | 41.83 | 152.37 | 136.71 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 9.84
= 37.10
The number of days of payables for Sensient Technologies Corporation has shown a fluctuating trend over the past five years. As of December 31, 2020, the company took an average of 136.71 days to pay its payables, which increased to 152.37 days by the end of 2021. However, there was a significant improvement in payables management by the end of 2022, as the number of days reduced to 41.83 days. This trend continued positively in 2023 and 2024, with further decreases to 36.62 days and 37.10 days, respectively.
The decreasing trend in the number of days of payables indicates that Sensient Technologies Corporation has been effectively managing its payables, potentially negotiating better payment terms with suppliers or improving its cash flow management practices. This trend could also suggest enhanced efficiency in working capital management, leading to potential cost savings or improved liquidity for the company. However, it is essential to monitor this ratio over time to ensure continued effective management of payables and sustainable financial health.
Peer comparison
Dec 31, 2024