Sensient Technologies Corporation (SXT)

Return on assets (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
Net income (ttm)	US$ in thousands	93,394	128,348	132,853	137,467	140,887	138,995	136,859	124,148	118,745	116,685	115,683	120,367	109,472	67,341	66,302	70,013	82,047	131,859	147,181	151,973
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
ROA		4.64%	6.38%	6.49%	6.80%	7.11%	7.56%	7.59%	6.94%	6.80%	6.75%	6.81%	6.99%	6.29%	3.93%	3.96%	4.14%	4.71%	7.41%	8.06%	8.26%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $93,394K ÷ $2,014,510K
= 4.64%

Sensient Technologies Corp.'s return on assets (ROA) has exhibited a decreasing trend over the past four quarters, with the Q4 2023 ROA reported at 4.64%, down from 6.38% in Q3 2023, 6.49% in Q2 2023, and 6.80% in Q1 2023. This decline suggests lower efficiency in generating profits relative to total assets employed in the business during the most recent quarter.

Comparing Q4 2023 with the same period in the previous year (Q4 2022), there has been a notable decrease from 7.11% to 4.64% in ROA. This significant drop signals potential challenges in asset utilization and profitability for Sensient Technologies Corp.

Overall, the downward trend in ROA over the past four quarters indicates a need for the company to assess and potentially improve its management of assets to enhance overall profitability and efficiency in the long term.