Sensient Technologies Corporation (SXT)

Gross profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Gross profit (ttm)	US$ in thousands	182,257	138,248	125,965	121,547	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
Revenue (ttm)	US$ in thousands	1,550,306	1,516,112	1,481,034	1,445,470	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
Gross profit margin		11.76%	9.12%	8.51%	8.41%	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%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $182,257K ÷ $1,550,306K
= 11.76%

Sensient Technologies Corporation's gross profit margin has shown fluctuations over the period under review. Starting at 59.47% on March 31, 2020, the gross profit margin remained relatively stable around the high 50% range until the end of 2020. However, there was a significant increase in the gross profit margin to 78.25% by December 31, 2020.

This elevated level was sustained in the following quarter, reaching 78.94% by March 31, 2021. Subsequently, there was a slight decline in the gross profit margin, dropping to 77.09% by June 30, 2021, and further to 77.17% by September 30, 2021.

The gross profit margin fluctuated within the range of 77%-79% in the subsequent quarters until June 30, 2022, where it reached the highest point of 79.24%. However, a significant decline began after this peak, dropping to 62.16% by September 30, 2022, and further declining to 45.81% by December 31, 2022.

The decline continued sharply in the following quarters, reaching as low as 8.41% by March 31, 2024. Although there was a slight uptick to 11.76% by the end of December 31, 2024, the trend shows a substantial decrease in the gross profit margin from the initial levels observed in the earlier periods.

Overall, the gross profit margin trend indicates volatility and a general downward trajectory from the initial high levels observed in 2020 towards the end of the period under review. This may be indicative of various factors impacting the company's revenue and cost structures during this period.