Sensient Technologies Corporation (SXT)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	26,626	36,969	30,339	25,417	28,934	31,985	36,546	24,017	20,921	46,579	25,271	32,175	25,740	32,939	33,306	28,000	24,770	26,900	20,876	23,085
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Cash ratio		0.10	0.14	0.13	0.12	0.12	0.14	0.16	0.10	0.08	0.18	0.10	0.15	0.11	0.15	0.17	0.14	0.11	0.13	0.10	0.12

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 of Sensient Technologies Corporation has fluctuated over the reported periods, ranging between 0.08 and 0.18. The ratio indicates the company's ability to cover its current liabilities with its cash and cash equivalents. A higher ratio suggests a stronger liquidity position, indicating the company has more cash on hand relative to its short-term obligations.

Sensient's cash ratio peaked at 0.18 on September 30, 2022, suggesting a robust liquidity position at that point. However, the ratio decreased to 0.08 by December 31, 2022, indicating a potential decrease in cash reserves relative to its short-term liabilities. The ratio remained relatively stable around 0.10 to 0.16 in subsequent periods, maintaining a moderate level of liquidity.

It's important to consider the industry standards and compare the company's cash ratio with its peers to assess its liquidity position accurately. Additionally, monitoring trends in the cash ratio can provide insights into the company's cash management practices and overall financial health.