Sensient Technologies Corporation (SXT)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 2,023,790 | 2,014,510 | 1,981,610 | 1,745,490 | 1,740,860 |
| Operating ROA | 9.47% | 7.70% | 9.93% | 9.74% | 8.77% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $191,579K ÷ $2,023,790K
= 9.47%
Sensient Technologies Corporation has shown a consistent trend in its operating return on assets (operating ROA) over the past five years. The operating ROA has improved from 8.77% as of December 31, 2020, to 9.47% as of December 31, 2024.
The company's operating ROA peaked at 9.93% on December 31, 2022, indicating efficient utilization of its assets to generate operating income. However, there was a slight decrease to 7.70% on December 31, 2023, which may warrant further investigation into the company's operational performance during that period.
Overall, the upward trend in the operating ROA demonstrates the company's ability to efficiently generate profits from its assets, although monitoring fluctuations in this ratio can provide insights into operational efficiency and potential areas for improvement.
Peer comparison
Dec 31, 2024