Sensient Technologies Corporation (SXT)

Working capital 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
Total current assets	US$ in thousands	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	788,213	792,361	812,087	826,296
Total current liabilities	US$ in thousands	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	201,375	192,191	194,669	197,452
Working capital turnover		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	2.22	2.18	2.16	2.16

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,430,648K ÷ ($936,616K – $236,306K)
= 2.04

Sensient Technologies Corp.'s working capital turnover ratio fluctuated over the past eight quarters. The company's working capital turnover ranged from a high of 2.53 in Q2 2022 to a low of 1.95 in Q2 2023, indicating variability in how efficiently the company is utilizing its working capital to generate sales.

A higher working capital turnover ratio generally indicates that the company is efficiently utilizing its working capital to support its sales activities. On the other hand, a lower ratio may suggest that the company is not effectively managing its working capital or facing challenges in converting its current assets into revenue.

In this case, while the working capital turnover ratio has shown some fluctuations, it generally remained above 2.00 in most quarters, indicating the company's ability to efficiently generate revenue using its working capital.

However, it is important to further investigate the reasons behind the fluctuations in the ratio to identify any underlying issues that may impact Sensient Technologies Corp.'s liquidity and operational efficiency.