Sensient Technologies Corporation (SXT)

Return on total capital

		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
Earnings before interest and tax (EBIT) (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
Long-term debt	US$ in thousands	645,085	648,556	686,589	679,779	630,331	547,190	498,715	530,005	503,006	490,901	483,230	524,244	518,004	537,124	537,680	589,339	598,499	616,967	656,737	688,952
Total stockholders’ equity	US$ in thousands	1,053,320	1,057,660	1,054,260	1,028,220	999,598	954,514	958,967	961,710	938,425	939,392	944,277	925,646	934,336	896,785	860,716	842,658	881,589	896,673	897,482	877,724
Return on total capital		9.13%	11.03%	10.98%	11.41%	12.07%	13.05%	13.41%	11.79%	11.80%	11.50%	11.11%	11.38%	10.51%	7.21%	7.22%	7.42%	8.18%	11.95%	12.37%	12.58%

December 31, 2023 calculation

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

Sensient Technologies Corp.'s return on total capital has shown a gradual decline from 12.86% in Q3 2022 to 9.06% in Q4 2023. This downward trend is indicative of a decreasing ability to generate profits from the total capital employed by the company over the specified periods. Despite a slight increase to 10.88% in Q2 and Q3 2023, the overall trajectory suggests a need for the company to optimize its capital allocation and operational efficiency to enhance its profitability. Further analysis and comparison with industry benchmarks may provide additional insights into the company's performance relative to its peers.