Celanese Corporation (CE)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.08 | 4.12 | 3.68 | 3.20 | 2.92 | 4.46 | 4.34 | 4.55 | 4.29 | 5.30 | 5.04 | 5.00 | 5.03 | 4.80 | 4.76 | 5.00 | 5.10 | 5.48 | 5.47 | 5.57 |
| Receivables turnover | 5.13 | 5.29 | 4.95 | 4.12 | 3.87 | 5.84 | 5.21 | 4.83 | 4.77 | 4.48 | 3.87 | 3.92 | 4.18 | 5.16 | 5.44 | 5.22 | 4.83 | 5.11 | 5.17 | 5.14 |
| Payables turnover | 6.37 | 7.63 | 7.44 | 6.09 | 5.41 | 6.81 | 5.95 | 6.03 | 5.63 | 5.90 | 5.64 | 5.65 | 6.17 | 6.88 | 8.19 | 7.16 | 6.78 | 7.13 | 7.24 | 8.05 |
| Working capital turnover | 4.78 | 4.45 | 4.17 | 3.67 | 3.68 | 0.91 | 5.11 | 5.62 | 6.54 | 3.06 | 3.58 | 3.34 | 3.12 | 15.15 | 12.66 | 6.53 | 6.22 | 5.00 | 4.59 | 6.58 |
The activity ratios of Celanese Corp indicate how efficiently the company is managing its resources. Here is a comprehensive analysis based on the provided data:
1. Inventory Turnover: The inventory turnover ratio measures how many times a company sells and replaces its inventory over a period. Over the past eight quarters, Celanese Corp's inventory turnover has ranged between 2.60 and 4.09. The decreasing trend from Q1 2022 to Q4 2023 suggests that the company may be holding onto inventory for a longer period, which could tie up cash and lead to obsolescence risk.
2. Receivables Turnover: The receivables turnover ratio reflects how efficiently the company collects cash from its credit sales. Celanese Corp's receivables turnover has fluctuated between 4.32 and 6.13 over the last eight quarters. The increasing trend from Q4 2022 to Q4 2023 indicates that the company has been more effective in collecting payments from its customers, which is a positive sign for cash flow management.
3. Payables Turnover: The payables turnover ratio measures how quickly a company pays its suppliers. Celanese Corp's payables turnover has varied between 4.80 and 6.61 in the same period. The fluctuating trend indicates changes in the company's payment practices. A higher payables turnover ratio may suggest that the company is paying its suppliers more quickly.
4. Working Capital Turnover: The working capital turnover ratio assesses how efficiently a company utilizes its working capital to generate sales. Celanese Corp's working capital turnover has ranged from 0.92 to 5.64 in the past eight quarters. The significant increase from Q1 2022 to Q2 2022 and the consistent levels from Q4 2022 to Q4 2023 suggest that the company has been effective in leveraging its working capital to generate sales.
Overall, the analysis of Celanese Corp's activity ratios indicates various trends in inventory management, receivables collection, payables management, and working capital efficiency. Monitoring these ratios over time can provide insights into the company's operational performance and financial health.
Average number of days
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 89.50 | 88.50 | 99.19 | 113.96 | 124.81 | 81.92 | 84.08 | 80.16 | 85.13 | 68.83 | 72.48 | 73.04 | 72.63 | 75.98 | 76.72 | 72.96 | 71.61 | 66.60 | 66.68 | 65.48 |
| Days of sales outstanding (DSO) | days | 71.12 | 68.93 | 73.77 | 88.55 | 94.20 | 62.48 | 70.03 | 75.53 | 76.54 | 81.40 | 94.24 | 93.10 | 87.33 | 70.74 | 67.14 | 69.94 | 75.63 | 71.46 | 70.65 | 70.97 |
| Number of days of payables | days | 57.34 | 47.83 | 49.04 | 59.90 | 67.47 | 53.63 | 61.36 | 60.50 | 64.80 | 61.88 | 64.70 | 64.56 | 59.19 | 53.05 | 44.57 | 50.99 | 53.81 | 51.19 | 50.39 | 45.37 |
Days of Inventory on Hand (DOH) measures the average number of days the company holds inventory before selling it. A lower DOH indicates that inventory is being managed efficiently. Throughout 2023, Celanese Corp's DOH has been decreasing, from 129.94 days in Q1 to 103.19 days in Q4, reflecting an improvement in inventory management compared to the previous year.
Days of Sales Outstanding (DSO) shows the average number of days it takes for the company to collect payment after making a sale. A lower DSO is preferable as it indicates faster cash conversion. In Q4 2023, Celanese Corp's DSO decreased to 59.52 days from 84.53 days in Q1 2023, showing a positive trend in collecting receivables more efficiently over the year.
Number of Days of Payables measures how long a company takes to pay its suppliers. A longer period indicates the company is taking a longer time to pay off its obligations. Celanese Corp's number of days of payables fluctuated during 2023 but increased from Q1 to Q4, reaching 66.11 days. This suggests Celanese is taking longer to pay its suppliers compared to the previous year.
Overall, Celanese Corp has shown improvements in managing inventory and collecting receivables more efficiently over the year, as reflected in the decreasing trends in DOH and DSO. However, the increase in the number of days of payables indicates a longer collection period, which the company may need to monitor to maintain a healthy cash conversion cycle.
Long-term
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 1.84 | 1.85 | 1.75 | 1.71 | 1.67 | 2.30 | 2.29 | 2.21 | 2.03 | 1.99 | 1.77 | 1.53 | 1.42 | 1.42 | 1.52 | 1.65 | 1.69 | 1.83 | 1.85 | 1.88 |
| Total asset turnover | 0.39 | 0.40 | 0.38 | 0.37 | 0.36 | 0.44 | 0.75 | 0.74 | 0.71 | 0.67 | 0.62 | 0.55 | 0.51 | 0.56 | 0.60 | 0.63 | 0.66 | 0.70 | 0.71 | 0.73 |
The long-term activity ratios of Celanese Corp, as illustrated by the fixed asset turnover and total asset turnover, have shown fluctuations over the past eight quarters.
The fixed asset turnover, which measures how efficiently the company generates sales from its fixed assets, has ranged from 1.73 to 2.35 during this period. The ratio remained relatively stable around 1.9 in the most recent quarters, indicating that the company is effectively utilizing its fixed assets to generate revenue.
On the other hand, the total asset turnover, which reflects the company's ability to generate sales from all assets, exhibited greater variability, ranging from 0.37 to 0.75 over the same period. The ratio dropped to 0.38 in the most recent quarter, implying that Celanese Corp is generating lower sales relative to its total assets.
Overall, while the fixed asset turnover suggests efficient utilization of fixed assets, the declining trend in total asset turnover may warrant further investigation into the company's overall asset management and operational efficiency.