Sensient Technologies Corporation (SXT)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 3.96 | 3.43 | 3.19 | 3.43 | 3.91 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $936,616K ÷ $236,306K
= 3.96
The current ratio of Sensient Technologies Corp. has exhibited variability over the past five years, ranging from a low of 3.19 in 2021 to a high of 3.96 in 2023. This ratio indicates the company's ability to cover its short-term liabilities with its current assets.
A current ratio above 1 implies that the company has more current assets than current liabilities, suggesting a strong liquidity position. Sensient's current ratio has consistently been well above 1, indicating a healthy ability to meet its short-term obligations.
The upward trend observed from 2021 to 2023 reflects an improvement in the company's liquidity position, potentially resulting from increased current assets or more efficient management of current liabilities.
Overall, Sensient Technologies Corp.'s current ratio trend indicates a solid financial footing and the ability to manage its short-term obligations effectively. Investors and stakeholders may view this as a positive indicator of the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023