Sensient Technologies Corporation (SXT)

Working capital 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
Total current assets	US$ in thousands	936,616	934,780	741,153	741,586	788,213
Total current liabilities	US$ in thousands	236,306	272,153	232,305	215,955	201,375
Working capital turnover		2.04	2.15	2.69	2.51	2.22

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,430,740K ÷ ($936,616K – $236,306K)
= 2.04

The working capital turnover ratio of Sensient Technologies Corp. has shown some fluctuations over the past five years, ranging from 2.08 to 2.71. The ratio indicates how effectively the company is utilizing its working capital to generate sales revenue. A higher ratio typically implies that the company is efficient in managing its working capital to support sales activities.

In the case of Sensient Technologies Corp., the working capital turnover ratio peaked in 2021 at 2.71, suggesting a significant increase in efficiency in converting working capital into sales. However, the ratio decreased slightly in 2023 to 2.08, indicating a potential decline in the company's ability to efficiently utilize its working capital for generating revenue compared to the previous year.

Overall, while the working capital turnover ratios for Sensient Technologies Corp. have fluctuated over the years, the company has generally maintained a moderate level of efficiency in managing its working capital to support sales activities. Further analysis of the company's working capital management practices and sales strategies may provide insights into these fluctuations and help identify opportunities for improvement.