showing the working

← Sensient Technologies

The business behind the dividend

MeasureSXTMedianFormula
Return on equity11.3%10.6%Net income ÷ shareholders’ equity
Return on capital employed10.9%10.0%Operating income ÷ (equity + total debt)
Owner earnings$106.18m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$38.42m$155.08mOperating cash flow − capital expenditure
Operating margin12.8%14.3%Operating income ÷ revenue
Net margin8.3%10.1%Net income ÷ revenue
Debt to equity0.59x0.73xTotal debt ÷ shareholders’ equity
Interest cover7.00x4.22xOperating income ÷ interest expense
Current ratio4.10x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capital0.87x1.88xLong-term debt ÷ (current assets − current liabilities)
Cash conversion0.95x1.66xOperating cash flow ÷ net income
Accruals0.3%-3.1%(Net income − operating cash flow) ÷ total assets

Ten years of it

The same measures, for every year the filings support. One year is a fact; a row is a business.

Measure2025202420232022202120202019201820172016Median
Return on equity11.3%11.8%8.9%14.1%12.7%11.7%9.3%18.3%10.5%15.1%11.7%
Return on capital employed10.9%11.4%9.1%12.1%11.8%10.4%8.2%13.1%11.5%13.1%11.4%
Operating margin12.8%12.3%10.6%13.7%12.3%11.5%9.2%14.7%12.3%13.4%12.3%
Net margin8.3%8.0%6.4%9.8%8.6%8.2%6.2%11.3%6.6%9.1%8.2%
Debt to equity0.59x0.58x0.61x0.63x0.54x0.56x0.68x0.80x0.71x0.70x0.61x
Current ratio4.10x3.55x3.96x3.43x3.19x3.43x3.91x3.83x3.39x3.36x3.43x
Cash conversion0.95x1.26x1.82x0.09x1.22x2.00x2.16x0.53x0.41x1.45x1.22x

How it compares in materials

Among the 79 materials companies here measured on free cash flow, Sensient Technologies pays out less than 4 of them. The median for that group is 34.3%, against this company’s 181.2%.

Closest on free cash flow

Same sector and same denominator, so the figures are comparable. All 107 in materials →