Sensient Technologies Corporation (SXT)

Payables 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
Payables	US$ in thousands	131,114	110,973	119,340	121,290	142,365	132,904	140,776	114,858	125,519	123,894	115,325	101,225	107,324	93,491	97,296	91,437	94,653	103,557	108,095	108,381
Payables turnover		9.97	11.44	10.59	8.39	5.42	4.03	2.06	2.63	2.40	2.51	2.66	2.76	2.67	2.27	2.17	2.36	2.16	2.48	2.39	2.43

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,306,827K ÷ $131,114K
= 9.97

Sensient Technologies Corp.'s payables turnover ratio has been relatively stable over the past eight quarters, fluctuating between 6.60 and 8.87. The payables turnover ratio indicates how many times a company pays off its accounts payable during a specific period. A higher ratio typically signifies that the company is managing its trade credit effectively by paying off its suppliers more quickly.

In the latest quarter, Q4 2023, Sensient Technologies Corp. had a payables turnover of 7.60, indicating that the company paid off its accounts payable approximately 7.60 times during the quarter. This suggests that the company is effectively managing its trade credit obligations.

The payables turnover has shown a consistent performance, indicating the company's ability to efficiently handle its supplier payments. However, it is essential to compare this ratio with industry benchmarks to get a better understanding of Sensient Technologies Corp.'s performance relative to its peers in the industry.