Sensient Technologies Corporation (SXT)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,550,306 | 1,516,112 | 1,481,034 | 1,445,470 | 1,430,648 | 1,432,436 | 1,432,305 | 1,432,967 | 1,422,547 | 1,416,171 | 1,400,017 | 1,363,899 | 1,367,431 | 1,361,130 | 1,339,949 | 1,326,926 | 1,317,174 | 1,299,821 | 1,292,466 | 1,306,970 |
| Receivables | US$ in thousands | 290,087 | 302,012 | 315,604 | 298,488 | 272,164 | 284,668 | 300,741 | 312,530 | 302,109 | 287,197 | 295,948 | 282,265 | 261,121 | 263,710 | 258,411 | 257,289 | 234,132 | 222,388 | 229,635 | 240,123 |
| Receivables turnover | 5.34 | 5.02 | 4.69 | 4.84 | 5.26 | 5.03 | 4.76 | 4.59 | 4.71 | 4.93 | 4.73 | 4.83 | 5.24 | 5.16 | 5.19 | 5.16 | 5.63 | 5.84 | 5.63 | 5.44 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,550,306K ÷ $290,087K
= 5.34
The receivables turnover ratio for Sensient Technologies Corporation has fluctuated over the past five years, ranging from a low of 4.59 to a high of 5.84. Generally, a higher receivables turnover ratio indicates that the company is able to collect its outstanding receivables more quickly.
Observing the trend, we can see that the receivables turnover ratio peaked at 5.84 in September 2020, showing efficient management of accounts receivable during that period. However, the ratio gradually decreased and stabilized around the range of 4.69 to 5.34 in the most recent periods, indicating a slight decline in the efficiency of collecting receivables.
It is important for the company to regularly monitor and analyze the receivables turnover ratio to ensure timely collection of outstanding payments and efficient management of working capital. A consistent or increasing trend in this ratio would suggest effective credit and collection policies, while a declining trend may signal potential issues with customer creditworthiness or internal collection processes.
Peer comparison
Dec 31, 2024