Sensient Technologies (Sensient Technologies) Interest Coverage : 1.24 (As of Dec. 2023)

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What is Sensient Technologies Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Sensient Technologies's Operating Income for the three months ended in Dec. 2023 was $8 Mil. Sensient Technologies's Interest Expense for the three months ended in Dec. 2023 was $-7 Mil. Sensient Technologies's interest coverage for the quarter that ended in Dec. 2023 was 1.24. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Sensient Technologies's Interest Coverage or its related term are showing as below:

SXT' s Interest Coverage Range Over the Past 10 Years
Min: 6.02 Med: 9.57 Max: 13.55
Current: 6.16

SXT's Interest Coverage is ranked worse than
61.64% of 1194 companies
in the Chemicals industry
Industry Median: 9.8 vs SXT: 6.16

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Sensient Technologies Interest Coverage Historical Data

The historical data trend for Sensient Technologies's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Sensient Technologies Interest Coverage Chart

Sensient Technologies Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

6.02

10.31

13.55

13.53

6.16

Sensient Technologies Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															8.59	8.47	8.12	7.08	1.24

Competitive Comparison of Sensient Technologies's Interest Coverage

For the Specialty Chemicals subindustry, Sensient Technologies's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Sensient Technologies's Interest Coverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Sensient Technologies's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Sensient Technologies's Interest Coverage falls into.

Sensient Technologies Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Sensient Technologies's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Sensient Technologies's Interest Expense was $-25 Mil. Its Operating Income was $155 Mil. And its Long-Term Debt & Capital Lease Obligation was $645 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	155.023	/	-25.172
	=	6.16

Sensient Technologies's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Sensient Technologies's Interest Expense was $-7 Mil. Its Operating Income was $8 Mil. And its Long-Term Debt & Capital Lease Obligation was $645 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	8.063	/	-6.524
	=	1.24

The higher the ratio, the stronger the company's Financial Strength is.

Sensient Technologies (NYSE:SXT) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Sensient Technologies Interest Coverage Related Terms

Thank you for viewing the detailed overview of Sensient Technologies's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Sensient Technologies (Sensient Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Sensient Technologies Corp (NYSE:SXT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

SSF:Germany

Address

777 East Wisconsin Avenue, Milwaukee, WI, USA, 53202-5304

Website

https://www.sensient.com

Sensient Technologies Corp manufactures and markets natural and synthetic colors, flavors, and other specialty ingredients. The company has a widespread network of facilities around the globe, and its customers operate across a variety of end markets. Sensient's offerings are predominantly applied to consumer-facing products, including food and beverage, cosmetics and pharmaceuticals, nutraceutical and personal care industries. The Company's principal products are flavors, flavor enhancers, ingredients, extracts, and bionutrients, essential oils, dehydrated vegetables and other food ingredients, natural and synthetic food and beverage colors and others. The company's three reportable segments were the Flavors & Extracts Group and the Color Group and, Asia Pacific Group.

Executives

E. Craig Mitchell	officer: Pres, Flavors & Fragrances Grp	777 E. WISCONSIN AVENUE, MILWAUKEE WI 53202
Anstalt Winder	10 percent owner	ZOLLSTRASSE 16, SCHAAN N2 9494
Investment Anstalt Winder	10 percent owner	ZOLLSTRASSE 16, SCHAAN N2 9494
Winder Pte. Ltd.	10 percent owner	6 BATTERY ROAD #19-01A, SINGAPORE U0 049909
Cunha Kathleen Da	director	777 E. WISCONSIN AVE., SUITE 1100, MILWAUKEE WI 53202
Winder Investment Pte Ltd	10 percent owner	19-01A 6 BATTERY ROAD, SINGAPORE U0 049909
Sharad P Jain	director	777 E. WISCONSIN AVE., SUITE 1100, MILWAUKEE WI 53202
Freemont Capital Pte Ltd	10 percent owner	19-01A 6 BATTERY ROAD, SINGAPORE U0 049909
Foundation Haldor	10 percent owner	ZOLLSTRASSE 16, SCHAAN N2 9494
Essie Whitelaw	director	777 E WISCONSIN AVE, MILWAUKEE WI 53202
Elaine R Wedral	director	C/O BALCHEM CORP, P O BOX 600, NEW HAMPTON NY 10958
Paul Manning	officer: President, Color Group	777 E. WISCONSIN AVE., MILWAUKEE WI 53202
Joseph Carleone	director	3883 HOWARD HUGHES PKWY, SUITE 700, LAS VEGAS NV 89169
Carol R Jackson	director	777 E. WISCONSIN AVENUE, MILWAUKEE WI 53202
Thierry Hoang	officer: VP, Asia Pacific Group	25B CHANCERY LANE, SINGAPORE U0 309515