Sensient Technologies Corporation (SXT)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	645,085	630,331	503,006	518,004	598,499
Total assets	US$ in thousands	2,014,510	1,981,610	1,745,490	1,740,860	1,740,150
Debt-to-assets ratio		0.32	0.32	0.29	0.30	0.34

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $645,085K ÷ $2,014,510K
= 0.32

The debt-to-assets ratio of Sensient Technologies Corp. has exhibited relatively stable levels over the past five years, ranging from 0.29 to 0.36. This ratio indicates the proportion of the company's assets that are financed through debt. A lower ratio suggests lower financial risk as a smaller portion of assets is funded by debt, while a higher ratio may indicate higher leverage and financial risk.

In particular, Sensient's debt-to-assets ratio remained at 0.33 in both 2023 and 2022, reflecting a consistent level of debt relative to assets during these years. The slight increase in 2020 to 0.30 and subsequent decrease in 2021 to 0.29 suggest some fluctuations in the company's debt and asset levels during those periods. The higher ratio of 0.36 in 2019 indicates a relatively higher level of debt compared to assets that year.

Overall, Sensient's debt-to-assets ratio has shown a moderate level of debt financing in relation to its total assets, with no significant upward or downward trends observed over the past five years. This stability indicates a relatively balanced approach to debt management, which could be perceived positively by investors and creditors evaluating the company's financial health and risk profile.