Sensient Technologies Corporation (SXT)
Payables 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 |
| Payables | US$ in thousands | 131,114 | 142,365 | 125,519 | 107,324 | 94,653 |
| Payables turnover | 9.97 | 8.73 | 2.40 | 2.67 | 3.13 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,306,830K ÷ $131,114K
= 9.97
The payables turnover ratio for Sensient Technologies Corp. has been fluctuating over the past five years. The ratio was 9.59 in 2019, indicating that the company's payables turnover was relatively high that year. However, there has been a decreasing trend in the payables turnover ratio since then, with figures of 8.46 in 2020, 7.37 in 2021, 6.66 in 2022, and 7.60 in 2023.
A high payables turnover ratio typically suggests that a company is efficiently managing its accounts payable by quickly paying off its suppliers. A decreasing payables turnover ratio over time could indicate several possible scenarios, such as the company taking longer to pay its suppliers, changes in payment terms with suppliers, or shifts in the company's purchasing patterns. It is important for stakeholders to closely monitor this trend to understand the company's liquidity management and supplier relationships.
Peer comparison
Dec 31, 2023