Sensient Technologies Corporation (SXT)

Solvency ratios

	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
Debt-to-assets ratio	0.32	0.32	0.34	0.34	0.32	0.30	0.28	0.30	0.29	0.28	0.28	0.30	0.30	0.31	0.32	0.35	0.34	0.35	0.36	0.37
Debt-to-capital ratio	0.38	0.38	0.39	0.40	0.39	0.36	0.34	0.36	0.35	0.34	0.34	0.36	0.36	0.37	0.38	0.41	0.40	0.41	0.42	0.44
Debt-to-equity ratio	0.61	0.61	0.65	0.66	0.63	0.57	0.52	0.55	0.54	0.52	0.51	0.57	0.55	0.60	0.62	0.70	0.68	0.69	0.73	0.78
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

Sensient Technologies Corp.'s solvency ratios provide insights into the company's ability to meet its long-term financial obligations.

1. Debt-to-assets ratio: This ratio has been relatively stable over the quarters, staying within the range of 0.33 to 0.35. It indicates that, on average, around 33% to 35% of the company's assets are financed by debt. The consistency suggests that the company has effectively managed its asset financing.

2. Debt-to-capital ratio: The trend shows a gradual increase from 0.37 in Q3 2022 to 0.41 in Q1 2023. This indicates an increasing reliance on debt for financing the company's capital structure. Investors and creditors may view this trend cautiously, as a higher ratio suggests a higher level of financial risk.

3. Debt-to-equity ratio: This ratio has also been on an upward trend, from 0.55 in Q2 2022 to 0.69 in Q1 2023. It indicates that the company's debt levels have been increasing in comparison to its equity. A higher ratio signifies higher financial risk and potential difficulties in meeting debt obligations.

4. Financial leverage ratio: The financial leverage ratio fluctuates between 1.86 and 1.98, showing some variability in Sensient Technologies Corp.'s capital structure efficiency. This metric quantifies the proportion of the company's assets that are financed through debt rather than equity. A higher ratio suggests higher financial risk and potentially lower financial flexibility.

Overall, the increasing trends in debt-related ratios indicate a shift towards a more debt-heavy capital structure for Sensient Technologies Corp. Investors and stakeholders should closely monitor these solvency ratios for any signs of financial distress or reduced debt servicing capacity.

Coverage ratios

	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
Interest coverage	6.16	8.03	9.18	11.10	13.53	15.68	16.47	14.53	13.55	12.46	11.62	11.84	10.31	6.47	5.80	5.59	6.02	8.66	9.01	9.08

Sensient Technologies Corp.'s interest coverage ratio has shown a decreasing trend over the past year, starting at a high of 16.47 in Q2 2022 and gradually declining to 6.16 in Q4 2023. This indicates that the company's ability to cover its interest payments with its earnings has weakened over time.

The company’s interest coverage ratio fluctuated between a range of 6.16 to 16.47 over the last eight quarters. A higher interest coverage ratio is generally preferred as it signifies a company's better ability to meet its interest obligations. Sensient Technologies Corp. should closely monitor this trend to ensure it maintains a healthy level of interest coverage to avoid potential financial difficulties related to debt servicing in the future.