Sensient Technologies Corporation (SXT)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	191,579	157,646	151,657	153,591	155,023	188,185	191,147	194,800	196,751	195,946	195,411	175,920	170,028	164,423	158,620	164,992	152,656	103,375	101,008	106,251
Total assets	US$ in thousands	2,023,790	2,042,610	1,994,870	2,005,680	2,014,510	2,010,180	2,046,210	2,022,730	1,981,610	1,839,210	1,803,220	1,788,620	1,745,490	1,728,420	1,697,730	1,721,010	1,740,860	1,713,950	1,673,260	1,692,830
Operating ROA		9.47%	7.72%	7.60%	7.66%	7.70%	9.36%	9.34%	9.63%	9.93%	10.65%	10.84%	9.84%	9.74%	9.51%	9.34%	9.59%	8.77%	6.03%	6.04%	6.28%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $191,579K ÷ $2,023,790K
= 9.47%

Sensient Technologies Corporation's operating return on assets (ROA) has shown a generally positive trend over the analyzed period from March 2020 to December 2024, fluctuating within a range of 6.03% to 10.84%. The company's operating ROA experienced a notable improvement from December 2021 to June 2022, reaching a peak of 10.84%, indicating efficient utilization of assets to generate operating income.

However, there was a gradual decline in operating ROA from June 2022 to December 2024, dropping to 9.47% by the end of December 2024. This decline suggests a potential decrease in the efficiency of the company in generating operating income relative to its asset base during this period.

Overall, Sensient Technologies Corporation's operating ROA performance demonstrates periods of strength and weakness, reflecting varying levels of asset productivity and operational efficiency over the analyzed timeframe. It would be important for stakeholders to further investigate the factors influencing these fluctuations to assess the company's long-term operational performance and profitability.