Sensient Technologies Corporation (SXT)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	155,023	196,751	170,028	152,656	121,110
Long-term debt	US$ in thousands	645,085	630,331	503,006	518,004	598,499
Total stockholders’ equity	US$ in thousands	1,053,320	999,598	938,425	934,336	881,589
Return on total capital		9.13%	12.07%	11.80%	10.51%	8.18%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $155,023K ÷ ($645,085K + $1,053,320K)
= 9.13%

Sensient Technologies Corp.'s return on total capital has fluctuated over the past five years. The company's return on total capital was 9.06% in 2023, which represents a decrease compared to the previous year. In 2022, the return on total capital was 11.92%, showing a significant drop from the prior year but maintaining a double-digit percentage. The company also delivered a strong performance in 2021 with a return on total capital of 11.73%. In 2020 and 2019, Sensient Technologies Corp. had returns on total capital of 10.44% and 8.07%, respectively.

Overall, Sensient Technologies Corp. has generally shown effective management in generating returns on its total capital over the years, with some fluctuations in performance. It is essential for the company to continue monitoring and improving its return on total capital to ensure sustainable growth and efficiency in capital utilization.