Sensient Technologies Corporation (SXT)

Working capital 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
Total current assets	US$ in thousands	961,886	958,801	944,255	942,843	936,616	945,154	968,691	959,892	934,780	880,740	821,526	783,358	741,153	738,961	708,068	737,158	741,586	752,549	738,316	764,745
Total current liabilities	US$ in thousands	270,639	256,455	227,035	218,859	236,306	223,817	222,646	234,651	272,153	255,425	263,916	214,383	232,305	224,365	196,416	198,773	215,955	212,037	213,237	200,637
Working capital turnover		2.24	2.16	2.06	2.00	2.04	1.99	1.92	1.98	2.15	2.26	2.51	2.40	2.69	2.65	2.62	2.46	2.51	2.40	2.46	2.32

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,550,306K ÷ ($961,886K – $270,639K)
= 2.24

The working capital turnover ratio for Sensient Technologies Corporation has shown some fluctuations over the past few periods. The ratio indicates how efficiently the company is utilizing its working capital to generate sales.

From March 31, 2020, to September 30, 2021, there was a general upward trend in the working capital turnover, indicating an improvement in working capital management efficiency. The ratio ranged from 2.32 to 2.69 during this period.

However, from March 31, 2022, to September 30, 2024, there was a slight decline in the working capital turnover ratio, with the ratio fluctuating between 1.98 to 2.24. This suggests a potential decrease in the efficiency of working capital utilization during these periods.

It is important for Sensient Technologies Corporation to monitor its working capital turnover ratio closely to ensure optimal management of its working capital and strive for consistent efficiency in generating sales with the available working capital resources.