Sensient Technologies Corporation (SXT)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	26,626	28,934	20,921	25,740	24,770
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	270,639	236,306	272,153	232,305	215,955
Cash ratio		0.10	0.12	0.08	0.11	0.11

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($26,626K + $—K) ÷ $270,639K
= 0.10

The cash ratio is a financial metric that indicates a company's ability to cover its short-term liabilities with its available cash and cash equivalents.

Based on the data provided for Sensient Technologies Corporation:
- As of December 31, 2020, the cash ratio was 0.11, indicating that the company had $0.11 in cash and cash equivalents for every $1 of short-term liabilities.
- The ratio remained consistent at 0.11 as of December 31, 2021.
- However, there was a decrease in the cash ratio to 0.08 as of December 31, 2022, suggesting a decrease in the company's ability to cover its short-term liabilities with cash.
- The ratio improved to 0.12 as of December 31, 2023, indicating an increase in the company's liquidity position.
- Subsequently, as of December 31, 2024, the cash ratio decreased slightly to 0.10, but still remained at a level indicating the company's ability to cover its short-term obligations with cash resources.

Overall, the trend in Sensient Technologies Corporation's cash ratio shows fluctuations over the years, with some periods of improvement and others of decline, potentially reflecting varying levels of cash management and liquidity within the company.