Sensient Technologies Corporation (SXT)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	1,053,320	999,598	938,425	934,336	881,589
Debt-to-capital ratio		0.38	0.39	0.35	0.36	0.40

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $645,085K ÷ ($645,085K + $1,053,320K)
= 0.38

The debt-to-capital ratio of Sensient Technologies Corp. has varied over the past five years, ranging from 0.35 to 0.41. The ratio indicates the proportion of the company's capital structure that is financed by debt.

In 2023, the debt-to-capital ratio decreased slightly to 0.38 from 0.39 in 2022. This decrease suggests that the company reduced its reliance on debt financing relative to its total capital.

Comparing the ratios over the five-year period, the company's debt-to-capital ratio was at its lowest in 2021 at 0.35, indicating a conservative capital structure with a lower reliance on debt. However, the ratio increased in 2022 and 2019, reaching 0.39 and 0.41 respectively, suggesting higher levels of debt financing during those years.

Overall, Sensient Technologies Corp. has demonstrated fluctuations in its debt-to-capital ratio over the years, reflecting changes in its financing strategy and capital structure. To assess the company's financial health and risk profile, it would be important to consider the reasons behind the variations in the debt-to-capital ratio and how it aligns with the company's overall financial goals.