Sensient Technologies Corporation (SXT)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 124,666 | 93,394 | 140,887 | 118,745 | 109,472 |
| Total assets | US$ in thousands | 2,023,790 | 2,014,510 | 1,981,610 | 1,745,490 | 1,740,860 |
| ROA | 6.16% | 4.64% | 7.11% | 6.80% | 6.29% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $124,666K ÷ $2,023,790K
= 6.16%
Sensient Technologies Corporation's Return on Assets (ROA) has shown a mixed trend over the years. The ROA increased from 6.29% in 2020 to 6.80% in 2021, suggesting improved efficiency in generating profits relative to its assets. In 2022, the ROA further increased to 7.11%, indicating continued effective utilization of assets to generate earnings.
However, in 2023, there was a notable decline in ROA to 4.64%, which may indicate potential challenges in asset utilization or profitability during that period. The company managed to improve the ROA again in 2024 to 6.16%, albeit not reaching the peak levels seen in 2022.
Overall, Sensient Technologies Corporation's ROA performance has been somewhat fluctuating, with periods of improvement and slight setbacks. It is important for stakeholders to further investigate the factors influencing these changes to better understand the company's asset efficiency and profitability.
Peer comparison
Dec 31, 2024