Celanese Corporation (CE)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,746,000 | 9,349,000 | 8,518,000 | 5,580,000 | 6,284,000 |
| Property, plant and equipment | US$ in thousands | 5,584,000 | 5,584,000 | 4,193,000 | 3,939,000 | 3,713,000 |
| Fixed asset turnover | 1.92 | 1.67 | 2.03 | 1.42 | 1.69 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $10,746,000K ÷ $5,584,000K
= 1.92
Fixed asset turnover measures how efficiently a company is generating sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates better asset utilization. In the case of Celanese Corp, the fixed asset turnover has fluctuated over the past five years, ranging from 1.44 to 2.04.
In 2023, Celanese Corp achieved a fixed asset turnover of 1.96, showing an improvement compared to the previous year's ratio of 1.73. This suggests that the company generated $1.96 in sales for every dollar invested in fixed assets during the year. The increase in the ratio could be attributed to better operational efficiency or increased sales relative to the investment in fixed assets.
It is important to note that the fixed asset turnover ratio should be analyzed in conjunction with other financial metrics to gain a comprehensive understanding of Celanese Corp's operational performance and asset management efficiency. Additionally, trends in fixed asset turnover should be monitored over time to assess the company's ability to effectively utilize its fixed assets to generate revenue.
Peer comparison
Dec 31, 2023