Sensient Technologies Corporation (SXT)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	155,023	196,751	170,028	152,656	121,110
Total assets	US$ in thousands	2,014,510	1,981,610	1,745,490	1,740,860	1,740,150
Operating ROA		7.70%	9.93%	9.74%	8.77%	6.96%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $155,023K ÷ $2,014,510K
= 7.70%

Sensient Technologies Corp.'s operating return on assets (operating ROA) has shown a fluctuating trend over the past five years. The operating ROA was 7.70% in 2023, a decrease from 9.93% in 2022 but still higher than the 2021 and 2020 levels of 9.74% and 8.77% respectively. The lowest operating ROA in the provided period was in 2019 at 6.96%.

The trend suggests that Sensient's ability to generate operating income from its assets has varied, with some years being more profitable than others. The decrease in operating ROA from 2022 to 2023 may indicate a potential dip in efficiency in utilizing assets to generate operating income. However, it's worth noting that the operating ROA remains positive, indicating that the company is generating returns from its operating activities.

Further analysis would be required to understand the specific factors driving these fluctuations in operating ROA and to assess the company's overall operational efficiency and profitability.