Sensient Technologies Corporation (SXT)

Debt-to-equity ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	613,523	645,085	630,331	503,006	518,004
Total stockholders’ equity	US$ in thousands	1,060,990	1,053,320	999,598	938,425	934,336
Debt-to-equity ratio		0.58	0.61	0.63	0.54	0.55

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $613,523K ÷ $1,060,990K
= 0.58

The debt-to-equity ratio of Sensient Technologies Corporation has shown relative stability over the past five years, ranging from 0.54 to 0.63. This indicates that the company has been financing its operations using a combination of debt and equity in a moderate manner. A decreasing trend in the ratio suggests a slight reduction in the proportion of debt relative to equity, implying potentially lower financial risk. However, the ratio remains above 0.5, signaling that the company relies more on debt financing than on equity. It is essential for investors and stakeholders to monitor this ratio over time to gauge the company's financial leverage and risk profile.