Sensient Technologies Corporation (SXT)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 191,579 | 155,023 | 196,751 | 170,028 | 152,656 |
| Long-term debt | US$ in thousands | 613,523 | 645,085 | 630,331 | 503,006 | 518,004 |
| Total stockholders’ equity | US$ in thousands | 1,060,990 | 1,053,320 | 999,598 | 938,425 | 934,336 |
| Return on total capital | 11.44% | 9.13% | 12.07% | 11.80% | 10.51% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $191,579K ÷ ($613,523K + $1,060,990K)
= 11.44%
The return on total capital for Sensient Technologies Corporation has displayed fluctuations over the past five years. It increased from 10.51% as of December 31, 2020, to 11.80% by the end of 2021, indicating an improvement in the company's ability to generate returns from its total capital. The trend continued into 2022, with a further increase to 12.07%. However, there was a decline in the return on total capital in 2023, dropping to 9.13%. The ratio recovered in 2024, reaching 11.44%.
Overall, the return on total capital for Sensient Technologies Corporation has shown variability, with some years exhibiting stronger performance than others. It is important for the company to focus on sustainable growth strategies to maintain or improve its return on total capital in the future.
Peer comparison
Dec 31, 2024