Sensient Technologies Corporation (SXT)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 1.17 | 1.32 | 1.52 | 1.48 | 1.27 | 1.41 | 1.51 | 1.43 | 1.19 | 1.31 | 1.22 | 1.47 | 1.23 | 1.32 | 1.49 | 1.44 | 1.20 | 1.18 | 1.17 | 1.31 |
| 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 |
The current ratio of Sensient Technologies Corporation has been consistently above 3, indicating the company has a strong ability to meet its short-term obligations with its current assets. The current ratio improved from 3.81 as of March 31, 2020, to 4.31 as of March 31, 2024, showing a positive trend in liquidity. This suggests that Sensient is in a good financial position to cover its current liabilities with its current assets.
Similarly, the quick ratio of Sensient has also shown stability and improvement over the years, ranging from 1.17 to 1.52. The quick ratio is above 1 for most periods, indicating the company has an adequate level of liquid assets to cover its short-term liabilities, excluding inventory.
In terms of the cash ratio, Sensient has generally maintained a healthy level of cash to cover its current liabilities, with the ratio hovering around 0.10 to 0.18. The cash ratio measures the ability of the company to cover its short-term liabilities with its cash and cash equivalents alone, and an increase in this ratio indicates improved liquidity and financial stability.
Overall, the liquidity ratios of Sensient Technologies Corporation demonstrate a strong liquidity position and ability to meet its short-term obligations effectively, reflecting positively on the company's financial health and operational efficiency.
Additional liquidity measure
| 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 conversion cycle | days | 191.36 | 194.99 | 197.97 | 203.22 | 199.95 | 209.39 | 212.11 | 241.97 | 277.20 | 324.99 | 468.17 | 447.22 | 417.03 | 385.84 | 361.63 | 396.03 | 413.93 | 590.94 | 567.58 | 562.06 |
The cash conversion cycle of Sensient Technologies Corporation has been showing fluctuations over the years. From March 31, 2020, to December 31, 2020, there was a significant decrease in the cycle from 562.06 days to 413.93 days, indicating a potential improvement in the company's efficiency in managing its cash, inventory, and receivables.
Subsequently, there was further improvement in the cash conversion cycle, reaching its lowest point at 191.36 days by December 31, 2024. This trend suggests that Sensient Technologies has been able to effectively manage its working capital and generate cash more efficiently during this period.
Overall, the decreasing trend in the cash conversion cycle is a positive sign for the company as it implies that Sensient Technologies has been able to convert its investments in inventory and receivables into cash at a faster rate, which can lead to improved liquidity and financial performance.