Sensient Technologies Corporation (SXT)

Return on total capital

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 191,579 157,646 151,657 153,591 155,023 188,185 191,147 194,800 196,751 195,946 195,411 175,920 170,028 164,423 158,620 164,992 152,656 103,375 101,008 106,251
Long-term debt US$ in thousands 613,523 625,627 634,663 643,511 645,085 648,556 686,589 679,779 630,331 547,190 498,715 530,005 503,006 490,901 483,230 524,244 518,004 537,124 537,680 589,339
Total stockholders’ equity US$ in thousands 1,060,990 1,080,450 1,057,780 1,063,940 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
Return on total capital 11.44% 9.24% 8.96% 9.00% 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%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (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 shown fluctuations over the past few years. It started at 7.42% in March 2020 and remained relatively stable around the 7% mark until December 2020. There was a notable increase in return on total capital to 10.51% by the end of 2020, and this upward trend continued into the following quarters of 2021, reaching 11.80% by December 2021.

During the first half of 2022, the return on total capital peaked at 13.41% in June before slightly decreasing to 12.07% by the end of the year. The trend continued in early 2023 with a slight decrease to 11.41% in March, followed by a further decline to 8.96% by June 2024. However, there was a recovery in the latter half of 2024, with the return on total capital rising to 11.44% by December 2024.

Overall, the return on total capital for Sensient Technologies Corporation has experienced variability but generally showed improvement over the period under review. Investors and stakeholders may want to further investigate the factors influencing these fluctuations to assess the company's capital management and profitability.