Sensient Technologies Corporation (SXT)

Current 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
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
Current ratio		3.55	3.74	4.16	4.31	3.96	4.22	4.35	4.09	3.43	3.45	3.11	3.65	3.19	3.29	3.60	3.71	3.43	3.55	3.46	3.81

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $961,886K ÷ $270,639K
= 3.55

The current ratio for Sensient Technologies Corporation has shown a fluctuating trend over the past few years, ranging from a low of 3.11 on June 30, 2022, to a high of 4.35 on June 30, 2023. This ratio indicates the company's ability to cover its short-term obligations with its current assets. Generally, a current ratio above 1 suggests that the company is capable of meeting its short-term liabilities.

Sensient's current ratio has mostly remained above 3 throughout the period, reflecting a strong ability to meet its short-term obligations. However, there were slight declines in the ratio in some quarters, such as on September 30, 2021, and December 31, 2021, when it dropped to 3.29 and 3.19, respectively.

The company's current ratio improved significantly in the later quarters of 2023, reaching a peak of 4.35 on June 30, 2023. This indicates an enhanced liquidity position during that period. However, there was a slight decline in the ratio in the following quarters, settling at 3.55 on December 31, 2024.

Overall, Sensient Technologies Corporation has maintained a healthy current ratio above 3 for the majority of the observed period, illustrating a strong ability to cover its short-term obligations with its current assets.