Celanese Corporation (CE)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 9,612,000 | 8,212,000 | 6,534,000 | 4,915,000 | 5,300,000 |
| Payables | US$ in thousands | 1,510,000 | 1,518,000 | 1,160,000 | 797,000 | 780,000 |
| Payables turnover | 6.37 | 5.41 | 5.63 | 6.17 | 6.79 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $9,612,000K ÷ $1,510,000K
= 6.37
Celanese Corp's payables turnover ratio has fluctuated over the past five years, indicating variations in how efficiently the company is managing its accounts payables. A higher payables turnover ratio typically suggests that the company is paying off its suppliers more frequently, which can be beneficial for maintaining good relationships and potentially negotiating better terms.
In 2023, Celanese Corp's payables turnover ratio increased to 5.52 from 4.80 in 2022, showing an improvement in managing payables. This could imply that the company is reducing the time it takes to pay its suppliers or possibly negotiating better payment terms.
Comparing the 2023 figure to the ratios in 2021, 2020, and 2019, the current ratio is slightly below the ratio observed in 2019 (6.01), which suggests a longer payment cycle compared to that year. However, it is still higher than the 2021 and 2020 figures, indicating better payables management in the most recent year.
Overall, while the payables turnover ratio has shown fluctuations, the latest increase in 2023 indicates improved efficiency in managing accounts payables compared to the previous year, which can have positive implications for the company's cash flow and supplier relations.
Peer comparison
Dec 31, 2023