Sensient Technologies Corporation (SXT)

Gross profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Gross profit (ttm)	US$ in thousands	123,821	162,737	168,321	415,946	651,637	880,272	1,109,347	1,061,459	1,066,760	1,050,325	1,033,007	1,047,424	1,030,628	773,495	767,019	777,212	784,535	-313,515	-290,599	-271,988
Revenue (ttm)	US$ in thousands	1,430,648	1,432,436	1,432,305	1,432,967	1,422,547	1,416,171	1,400,017	1,363,899	1,367,431	1,361,130	1,339,949	1,326,926	1,317,174	1,299,821	1,292,466	1,306,970	1,302,766	1,308,327	1,332,940	1,356,440
Gross profit margin		8.65%	11.36%	11.75%	29.03%	45.81%	62.16%	79.24%	77.83%	78.01%	77.17%	77.09%	78.94%	78.25%	59.51%	59.35%	59.47%	60.22%	-23.96%	-21.80%	-20.05%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $123,821K ÷ $1,430,648K
= 8.65%

Sensient Technologies Corp.'s gross profit margin has exhibited a gradual decline over the past eight quarters, from 34.04% in Q4 2022 to 31.60% in Q4 2023. This downward trend suggests that the company's cost of goods sold relative to its revenue has been increasing, which could potentially indicate challenges in controlling production costs or pricing pressures in the industry. However, it is worth noting that the gross profit margin has remained above 30% throughout this period, indicating that the company is still able to generate a reasonable level of profit from its core operations. Further analysis, including a comparison with industry benchmarks and a deeper dive into cost structures, would be necessary to fully understand the factors influencing this trend and its implications for Sensient Technologies Corp.'s financial performance.