Celanese Corporation (CE)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.47 | 3.54 | 2.60 | 3.84 | 4.46 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 7.96 | 5.10 | 3.80 | 6.56 | 3.16 |
The activity ratios of Celanese Corporation provide insights into how efficiently the company is managing its assets and liabilities:
1. Inventory Turnover: The inventory turnover ratio measures how many times a company sells and replaces its inventory in a given period. Over the five-year period from 2020 to 2024, we observe a declining trend in Celanese Corporation's inventory turnover ratio, from 4.46 in 2020 to 3.47 in 2024. This implies that the company is holding onto its inventory for a longer period before selling it, which may indicate potential issues with inventory management or changing market demand.
2. Receivables Turnover: The receivables turnover ratio reflects how efficiently a company collects payments from its customers. The data provided shows that Celanese Corporation did not report receivables turnover for the years between 2020 and 2024, which makes it challenging to assess the effectiveness of the company's credit and collection policies.
3. Payables Turnover: The payables turnover ratio indicates how quickly a company pays its suppliers. Similar to receivables turnover, Celanese Corporation did not provide data for payables turnover, making it difficult to evaluate the efficiency of the company's payment practices.
4. Working Capital Turnover: The working capital turnover ratio measures how effectively a company is utilizing its working capital to generate revenue. The trend for Celanese Corporation's working capital turnover ratio shows fluctuation, with significant increases observed in 2021 and 2024 (6.56 and 7.96 respectively). This indicates that the company's ability to generate revenue from its working capital improved in those years, potentially due to improved operational efficiency or effective management of current assets and liabilities.
Overall, while the analysis of Celanese Corporation's activity ratios provides some valuable insights, the lack of data for receivables and payables turnover limits a comprehensive assessment of the company's efficiency in managing its working capital and operating cycle. Evaluating these ratios in conjunction with other financial metrics would provide a more complete picture of Celanese Corporation's operational performance.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 105.21 | 103.19 | 140.53 | 95.01 | 81.84 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Celanese Corporation's Days of Inventory on Hand (DOH) indicates the average number of days it takes for the company to sell its inventory. The trend shows an increase from 81.84 days in 2020 to 105.21 days in 2024, with a peak at 140.53 days in 2022. This suggests a slower turnover of inventory over the years, possibly due to changes in production, demand, or supply chain efficiency.
The Days of Sales Outstanding (DSO) data is not available for analysis, indicating that information on how long it takes for the company to collect revenue from sales is not provided in the dataset. This could limit a comprehensive assessment of Celanese Corporation's efficiency in collecting payments from customers.
The Number of Days of Payables data is also not provided, preventing an examination of how long the company takes to pay its suppliers. This metric is crucial for understanding Celanese Corporation's liquidity management and relationships with suppliers.
In conclusion, while the DOH trend suggests a decrease in inventory turnover efficiency over the years, the absence of DSO and payables data limits a full analysis of Celanese Corporation's activities in managing receivables and payables.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 1.73 | 1.93 | 1.44 |
| Total asset turnover | 0.45 | 0.41 | 0.37 | 0.71 | 0.52 |
Celanese Corporation's fixed asset turnover ratio has shown variation over the years, with a notable improvement from 1.44 in 2020 to 1.93 in 2021, indicating that the company generated $1.93 in sales for every $1 invested in fixed assets in 2021. However, there was a slight decline to 1.73 in 2022. The absence of data for 2023 and 2024 limits a more comprehensive trend analysis.
In contrast, the total asset turnover ratio of Celanese Corporation has displayed a fluctuating pattern. The ratio increased from 0.52 in 2020 to 0.71 in 2021, suggesting an enhanced efficiency in generating sales from total assets. However, there was a significant decrease to 0.37 in 2022, reflecting a decline in sales generated relative to total assets. The ratios for 2023 and 2024 show a slight recovery to 0.41 and 0.45, respectively.
These ratios provide insights into how efficiently Celanese Corporation is utilizing its assets to generate revenue. The company should monitor these ratios closely to ensure optimal utilization of assets to drive profitability and growth.