Sensient Technologies Corporation (SXT)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,023,790 | 2,014,510 | 1,981,610 | 1,745,490 | 1,740,860 |
| Total stockholders’ equity | US$ in thousands | 1,060,990 | 1,053,320 | 999,598 | 938,425 | 934,336 |
| Financial leverage ratio | 1.91 | 1.91 | 1.98 | 1.86 | 1.86 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,023,790K ÷ $1,060,990K
= 1.91
The financial leverage ratio of Sensient Technologies Corporation has been relatively stable over the past five years. It was 1.86 at the end of both 2020 and 2021, slightly increased to 1.98 at the end of 2022, and then decreased to 1.91 at the end of both 2023 and 2024.
A financial leverage ratio of less than 2 indicates that Sensient Technologies relies more on equity financing rather than debt to fund its operations and investments. The slight fluctuations in the ratio suggest that the company has been managing its debt levels effectively to maintain a healthy balance between debt and equity in its capital structure. This stability indicates a conservative approach to financing that may help mitigate financial risks and strengthen the company's financial position in the long term.
Peer comparison
Dec 31, 2024