Sensient Technologies Corporation (SXT)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Total assets	US$ in thousands	2,023,790	2,042,610	1,994,870	2,005,680	2,014,510	2,010,180	2,046,210	2,022,730	1,981,610	1,839,210	1,803,220	1,788,620	1,745,490	1,728,420	1,697,730	1,721,010	1,740,860	1,713,950	1,673,260	1,692,830
Total stockholders’ equity	US$ in thousands	1,060,990	1,080,450	1,057,780	1,063,940	1,053,320	1,057,660	1,054,260	1,028,220	999,598	954,514	958,967	961,710	938,425	939,392	944,277	925,646	934,336	896,785	860,716	842,658
Financial leverage ratio		1.91	1.89	1.89	1.89	1.91	1.90	1.94	1.97	1.98	1.93	1.88	1.86	1.86	1.84	1.80	1.86	1.86	1.91	1.94	2.01

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,023,790K ÷ $1,060,990K
= 1.91

Sensient Technologies Corporation's financial leverage ratio has shown a declining trend over the last few years, indicating improved financial stability and lower reliance on debt. The ratio decreased from 2.01 as of March 31, 2020, to 1.91 as of September 30, 2020, and further decreased to 1.80 as of June 30, 2021. However, there was a slight increase to 1.93 as of September 30, 2022, before settling at around 1.89 to 1.91 from December 31, 2024, onwards.

A financial leverage ratio below 2 suggests that Sensient Technologies Corporation has more equity than debt in its capital structure, which can be seen as positive by investors and creditors as it indicates a lower risk of financial distress. This trend may also imply that the company is managing its debt levels effectively and strengthening its financial position over time.