Sensient Technologies Corporation (SXT)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	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	121,110	180,828	192,304	197,117
Total assets	US$ in thousands	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	1,740,150	1,778,560	1,825,500	1,840,870
Operating ROA		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%	6.96%	10.17%	10.53%	10.71%

December 31, 2023 calculation

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

Sensient Technologies Corp.'s operating return on assets (operating ROA) experienced a decreasing trend over the past eight quarters, falling from 10.84% in Q2 2022 to 7.70% in Q4 2023. This indicates that the company's ability to generate operating profits from its assets has been gradually declining. Despite some fluctuations, the operating ROA has generally been above 9% over the period under review, indicating a relatively efficient utilization of assets to generate operating income. However, the recent decline in operating ROA warrants further investigation to understand the underlying reasons and potential implications for the company's financial performance and operational efficiency.