Sensient Technologies Corporation (SXT)

Solvency ratios

	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
Debt-to-assets ratio	0.30	0.31	0.32	0.32	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
Debt-to-capital ratio	0.37	0.37	0.37	0.38	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
Debt-to-equity ratio	0.58	0.58	0.60	0.60	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
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

Sensient Technologies Corporation's solvency ratios show a favorable trend over the analyzed period.

- The Debt-to-assets ratio has decreased steadily from 0.35 in March 2020 to 0.30 in December 2024, indicating that the company's proportion of debt relative to its total assets has been on a declining trend.

- The Debt-to-capital ratio also presents a decreasing pattern, from 0.41 in March 2020 to 0.37 in December 2024, showing that Sensient Technologies has been relying less on debt capital compared to its total capital structure over time.

- The Debt-to-equity ratio has exhibited a consistent reduction from 0.70 in March 2020 to 0.58 in December 2024, reflective of the company's decreasing reliance on debt in relation to its equity financing.

- The Financial leverage ratio has been relatively stable but shows a slight decline from 2.01 in March 2020 to 1.91 in December 2024, indicating that the company's financial risk has slightly decreased over the period.

Overall, the solvency ratios suggest that Sensient Technologies Corporation has been effectively managing its debt levels and financial leverage, which may potentially enhance its financial stability and creditworthiness over the analyzed timeframe.

Coverage ratios

	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
Interest coverage	6.66	5.45	5.51	5.86	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

The interest coverage ratio of Sensient Technologies Corporation has shown a generally positive trend over the periods provided. Starting at 5.59 for March 31, 2020, the ratio improved steadily to reach 16.47 by June 30, 2022. This indicates the company's improving ability to cover its interest expenses with its earnings.

However, after June 30, 2022, there was a slight decline in the interest coverage ratio, dropping to 5.86 by March 31, 2024. This decrease could suggest increased financial leverage or a decline in operating income relative to interest expenses during this period.

Subsequently, the ratio continued to decline gradually, reaching 5.45 by September 30, 2024. A declining interest coverage ratio may raise concerns about the company's ability to meet its interest obligations from its earnings, potentially indicating risk in terms of financial stability.

Overall, while the initial improvement in interest coverage was positive, the subsequent decline warrants further monitoring and investigation to understand the factors driving the trend and to assess the potential implications for Sensient Technologies Corporation's financial health.