Sensient Technologies Corporation (SXT)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,430,740 | 1,422,220 | 1,367,390 | 1,317,440 | 1,303,950 |
| Receivables | US$ in thousands | 272,164 | 302,109 | 261,121 | 234,132 | 213,201 |
| Receivables turnover | 5.26 | 4.71 | 5.24 | 5.63 | 6.12 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,430,740K ÷ $272,164K
= 5.26
The receivables turnover ratio for Sensient Technologies Corp. has exhibited some fluctuations over the last five years. It decreased from 6.21 in 2019 to 5.69 in 2020 before experiencing a slight recovery to 5.29 in 2021. However, there was a notable improvement in 2022 with a receivables turnover of 4.76. In the most recent year, the ratio increased to 5.35.
A high receivables turnover ratio generally indicates that the company is efficient in collecting outstanding receivables from its customers. A declining ratio over the years could suggest a potential issue with credit policies, customer payment behaviors, or the quality of receivables.
Analyzing the trend and magnitude of changes in the receivables turnover ratio can provide insights into the company's liquidity position, credit management efficiency, and overall financial health. Further investigation into the underlying reasons for the fluctuations in the ratio may be necessary to assess the effectiveness of Sensient Technologies Corp.'s accounts receivable management.
Peer comparison
Dec 31, 2023