Sensient Technologies Corporation (SXT)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 28,934 | 20,921 | 25,740 | 24,770 | 21,153 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 272,164 | 302,109 | 261,121 | 234,132 | 213,201 |
| Total current liabilities | US$ in thousands | 236,306 | 272,153 | 232,305 | 215,955 | 201,375 |
| Quick ratio | 1.27 | 1.19 | 1.23 | 1.20 | 1.16 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($28,934K
+ $—K
+ $272,164K)
÷ $236,306K
= 1.27
The quick ratio of Sensient Technologies Corp. has shown a stable trend over the past five years, ranging between 1.36 and 1.43. This indicates that the company has consistently maintained a healthy level of liquidity to cover its short-term obligations with its most liquid assets.
A quick ratio above 1 suggests that Sensient Technologies Corp. has more than enough liquid assets, such as cash and marketable securities, to meet its short-term liabilities without relying on selling inventory. This signifies a strong ability to handle financial obligations promptly.
The slight fluctuations in the quick ratio from year to year are relatively minor and do not indicate any significant liquidity concerns for the company. Overall, the consistent quick ratio above 1 demonstrates Sensient Technologies Corp.'s solid financial position and ability to manage its short-term obligations effectively.
Peer comparison
Dec 31, 2023