Sensient Technologies Corporation (SXT)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 8.66% | 12.65% | 78.01% | 78.25% | 77.25% |
| Operating profit margin | 10.84% | 13.83% | 12.43% | 11.59% | 9.29% |
| Pretax margin | 9.08% | 12.81% | 11.52% | 10.46% | 7.75% |
| Net profit margin | 6.53% | 9.91% | 8.68% | 8.31% | 6.29% |
Sensient Technologies Corp.'s profitability ratios have exhibited fluctuations over the past five years. The gross profit margin decreased slightly from 34.04% in 2022 to 31.60% in 2023, indicating a decrease in the percentage of revenue left after accounting for the cost of goods sold.
The operating profit margin also saw a decline from 13.69% in 2022 to 10.64% in 2023, suggesting a decrease in operating efficiency and profitability.
The pretax margin followed a similar trend, decreasing from 12.68% in 2022 to 8.92% in 2023, indicating a reduction in profitability before accounting for taxes.
The net profit margin experienced a decline as well, dropping from 9.80% in 2022 to 6.41% in 2023. This ratio reflects the company's overall profitability after all expenses are deducted, including taxes.
Overall, the downward trend in profitability ratios suggests potential challenges for Sensient Technologies Corp. in maintaining and improving its profitability in the future. Further analysis of the company's cost structure, revenue streams, and operational efficiency may be warranted to address these declines and identify opportunities for improvement.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.70% | 9.93% | 9.74% | 8.77% | 6.96% |
| Return on assets (ROA) | 4.64% | 7.11% | 6.80% | 6.29% | 4.71% |
| Return on total capital | 9.13% | 12.07% | 11.80% | 10.51% | 8.18% |
| Return on equity (ROE) | 8.87% | 14.09% | 12.65% | 11.72% | 9.31% |
Sensient Technologies Corp.'s profitability ratios have shown fluctuations over the past five years. In terms of Operating Return on Assets (Operating ROA), the company's performance has ranged from 6.96% in 2019 to 9.93% in 2022, with a slight decrease to 7.70% in 2023. This indicates the company's ability to generate profits from its operating assets, with a slight dip in the most recent year.
Return on Assets (ROA) has also varied, with the lowest being 4.71% in 2019 and the highest at 7.11% in 2022. In 2023, the ROA decreased to 4.64%, suggesting a decline in the company's overall efficiency in generating profits from its total assets.
Return on Total Capital has followed a similar trend, fluctuating between 8.07% in 2019 and reaching a peak of 11.92% in 2022. In 2023, it stood at 9.06%, indicating the company's ability to generate returns for both equity and debt holders, with a slight decrease compared to the previous year.
Return on Equity (ROE) has demonstrated a similar pattern, varying from 9.31% in 2019 to 14.09% in 2022. In 2023, the ROE was 8.87%, showing a decrease from the previous year and reflecting the company's profitability in relation to shareholder equity.
Overall, Sensient Technologies Corp. has shown fluctuations in its profitability ratios over the years, with some ratios experiencing declines in 2023 compared to the prior year. This analysis suggests the company's performance in generating profits relative to its assets, capital, and equity.