Sensient Technologies Corporation (SXT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 12.16% | 8.66% | 12.65% | 78.01% | 78.25% |
| Operating profit margin | 12.30% | 10.84% | 13.83% | 12.43% | 11.59% |
| Pretax margin | 10.45% | 9.08% | 12.81% | 11.52% | 10.46% |
| Net profit margin | 8.00% | 6.53% | 9.91% | 8.68% | 8.31% |
Sensient Technologies Corporation's profitability ratios show fluctuating trends over the years. The gross profit margin decreased from 78.25% in 2020 to 8.66% in 2023 before slightly recovering to 12.16% in 2024, indicating significant volatility in cost of goods sold and pricing strategies.
The operating profit margin improved from 11.59% in 2020 to 13.83% in 2022, showcasing operational efficiency, but then dipped to 10.84% in 2023, before recovering to 12.30% in 2024. This suggests that while the company managed its operating expenses well initially, it faced challenges in maintaining profitability in 2023.
The pretax margin saw an increase from 10.46% in 2020 to 12.81% in 2022, indicating better pre-tax earnings generation, but then dropped to 9.08% in 2023 before slightly rebounding to 10.45% in 2024. This indicates fluctuations in the company's ability to control non-operating expenses and taxes.
The net profit margin also followed a similar trend, improving from 8.31% in 2020 to 9.91% in 2022, but then declining to 6.53% in 2023, before recovering slightly to 8.00% in 2024. This suggests that while the company was able to generate higher net profits initially, it faced challenges in maintaining bottom-line profitability in 2023.
Overall, the profitability ratios of Sensient Technologies Corporation indicate a mixed performance, with some years showing strength in profitability metrics, while others demonstrating challenges that impacted the company's overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.47% | 7.70% | 9.93% | 9.74% | 8.77% |
| Return on assets (ROA) | 6.16% | 4.64% | 7.11% | 6.80% | 6.29% |
| Return on total capital | 11.44% | 9.13% | 12.07% | 11.80% | 10.51% |
| Return on equity (ROE) | 11.75% | 8.87% | 14.09% | 12.65% | 11.72% |
Sensient Technologies Corporation has demonstrated a consistent improvement in its profitability ratios over the past five years.
- Operating return on assets (Operating ROA) has shown a positive trend, increasing from 8.77% in 2020 to 9.47% in 2024. This indicates that the company is effectively generating operating income relative to its assets.
- Return on assets (ROA) has also experienced an upward trajectory, rising from 6.29% in 2020 to 6.16% in 2024. Although there was a slight decrease in 2023, the overall trend showcases the company's ability to generate earnings from its total assets.
- Return on total capital has shown a similar pattern of improvement, increasing from 10.51% in 2020 to 11.44% in 2024. This indicates that Sensient Technologies is generating higher returns in relation to its total capital employed.
- Return on equity (ROE) has exhibited a positive trend, climbing from 11.72% in 2020 to 11.75% in 2024. This indicates that the company is creating value for its shareholders by generating a satisfactory return on their equity investments.
Overall, the upward trajectory in these profitability ratios suggests that Sensient Technologies Corporation has been efficiently utilizing its assets and capital to drive profitability and create value for its shareholders.