Sensient Technologies Corporation (SXT)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	26,626	28,934	20,921	25,740	24,770
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	290,087	272,164	302,109	261,121	234,132
Total current liabilities	US$ in thousands	270,639	236,306	272,153	232,305	215,955
Quick ratio		1.17	1.27	1.19	1.23	1.20

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($26,626K + $—K + $290,087K) ÷ $270,639K
= 1.17

The quick ratio of Sensient Technologies Corporation has been relatively stable over the past five years, ranging from 1.17 to 1.27. This indicates that the company has a strong ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1.0 suggests that Sensient Technologies Corporation has an adequate level of liquid assets to cover its current liabilities without having to rely heavily on inventory. The slight fluctuations in the quick ratio from year to year suggest that the company has been managing its liquidity effectively. Overall, the consistent quick ratio above 1.0 demonstrates Sensient Technologies Corporation's strong financial position and ability to meet its short-term obligations comfortably.