Sensient Technologies Corporation (SXT)

Payables 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
Payables	US$ in thousands	139,052	119,238	107,218	104,834	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
Payables turnover		9.84	11.56	12.64	12.63	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

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,368,049K ÷ $139,052K
= 9.84

The payables turnover ratio for Sensient Technologies Corporation has shown a fluctuating trend over the past few years. In March 2020, the payables turnover ratio was 2.36, indicating that the company takes approximately 2.36 times to pay off its suppliers.

The ratio decreased to 2.17 in June 2020 but then gradually increased to 2.76 by March 2021. However, from there, the ratio started to fluctuate, reaching its lowest point of 2.06 in June 2022.

Subsequently, there was a sharp increase in the payables turnover ratio, peaking at 12.63 in March 2024. This suggests that Sensient Technologies Corporation significantly improved its efficiency in paying off its payables in a timely manner during that period.

Overall, the fluctuating trend in the payables turnover ratio of Sensient Technologies Corporation indicates varying management of its accounts payable and supplier relationships over the analyzed period.