Sensient Technologies Corporation (SXT)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	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	1,740,150	1,778,560	1,825,500	1,840,870
Total stockholders’ equity	US$ in thousands	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	881,589	896,673	897,482	877,724
Financial leverage ratio		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	1.97	1.98	2.03	2.10

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 shown some fluctuations over the past eight quarters, ranging from 1.86 to 1.98. This ratio indicates that, on average, the company has been using higher levels of debt relative to equity to finance its operations during this period. A financial leverage ratio above 1 implies that the company has more debt than equity in its capital structure.

The downward trend from Q4 2022 to Q2 2023 suggests that the company may have been reducing its reliance on debt financing or improving its equity position during this period. However, the slight increase in Q3 and Q4 2023 indicates a reversal in this trend, with the company potentially taking on more debt relative to equity.

Overall, investors and stakeholders should monitor Sensient Technologies Corp.'s financial leverage ratio closely to assess the company's risk profile and ability to meet its financial obligations, as higher levels of debt could lead to increased financial risk, especially in times of economic uncertainty.