Sensient Technologies Corporation (SXT)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	191,579	155,023	196,751	170,028	152,656
Revenue	US$ in thousands	1,557,370	1,430,740	1,422,220	1,367,390	1,317,440
Operating profit margin		12.30%	10.84%	13.83%	12.43%	11.59%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $191,579K ÷ $1,557,370K
= 12.30%

Sensient Technologies Corporation's operating profit margin has shown fluctuations over the past five years.

In 2020, the operating profit margin was at 11.59%, indicating that the company was able to convert 11.59% of its revenue into operating profit. This number increased to 12.43% in 2021, showing some improvement in efficiency.

The operating profit margin further increased to 13.83% in 2022, reaching its highest point within the five-year period. This suggests that the company was managing its operating expenses effectively and generating higher profits relative to revenue during that year.

However, in 2023, there was a decline in the operating profit margin to 10.84%, indicating a decrease in profitability and efficiency in converting revenue into operating profit.

In 2024, the operating profit margin improved to 12.30%, showing a partial recovery from the previous year's decline but still below the peak recorded in 2022.

Overall, while Sensient Technologies Corporation has experienced fluctuations in its operating profit margin over the years, it is essential for the company to maintain a healthy balance between revenue generation and operational efficiency to sustain profitability in the long term.