Sensient Technologies Corporation (SXT)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	2,014,510	1,981,610	1,745,490	1,740,860	1,740,150
Total stockholders’ equity	US$ in thousands	1,053,320	999,598	938,425	934,336	881,589
Financial leverage ratio		1.91	1.98	1.86	1.86	1.97

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,014,510K ÷ $1,053,320K
= 1.91

The financial leverage ratio of Sensient Technologies Corp. has slightly decreased from 1.98 in 2022 to 1.91 in 2023. This indicates that the company relies more on equity financing rather than debt financing to fund its assets and operations. The decrease in the ratio could suggest improved financial stability and reduced risk associated with debt. However, it is important to note that the ratio has been relatively stable over the past five years, ranging between 1.86 and 1.98, reflecting a consistent financing structure. Further analysis of the company's capital structure and profitability metrics would provide a more complete understanding of its financial health.