Sensient Technologies Corporation (SXT)

Receivables 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
Revenue (ttm)	US$ in thousands	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	1,302,766	1,308,327	1,332,940	1,356,440
Receivables	US$ in thousands	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	213,201	244,610	273,109	273,800
Receivables turnover		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	6.11	5.35	4.88	4.95

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,430,648K ÷ $272,164K
= 5.26

Sensient Technologies Corp.'s receivables turnover ratio has been relatively stable over the past eight quarters, ranging from 4.64 to 5.35. This ratio indicates how efficiently the company is able to collect its outstanding receivables during a specific period.

A higher receivables turnover ratio suggests that the company is more efficient in collecting payments from customers, which is generally favorable as it indicates a shorter time between credit sales and cash collection. Sensient's consistent receivables turnover ratios around 5 indicate that the company has a good track record of managing its accounts receivable effectively.

It is important to note that variations in the receivables turnover ratio from quarter to quarter could be due to seasonal factors or changes in the company's credit policies. Overall, a relatively stable and healthy receivables turnover ratio for Sensient Technologies Corp. indicates good management of accounts receivable and efficient cash flow management.