Celanese Corporation (CE)

Short-term

Turnover ratios

Celanese Corporation's inventory turnover ratio provides insight into how efficiently the company is managing its inventory. The ratio has fluctuated over the periods provided, starting at 4.41 in March 2020 and reaching a peak of 4.76 in September 2021 before decreasing to 3.50 by December 2024. A higher turnover indicates better efficiency in selling inventory.

The receivables turnover ratio, which reflects how quickly the company collects its accounts receivable, is not available in the provided data for any of the periods. This lack of information makes it challenging to assess the company's effectiveness in collecting payments from customers.

Similarly, the payables turnover ratio, which shows how quickly the company pays its suppliers, is also not available in the data provided. Without this ratio, it is difficult to evaluate the company's payment practices and relationships with its suppliers.

The working capital turnover ratio measures how efficiently the company generates revenue relative to its working capital. Celanese's working capital turnover ratio has shown variability over the periods, with a notable increase from 3.16 in December 2020 to 10.49 in March 2024. A higher ratio implies that the company is effectively utilizing its working capital to generate sales.

In conclusion, while Celanese Corporation has shown fluctuations in its inventory turnover and working capital turnover ratios over the provided periods, the absence of data for receivables and payables turnover ratios limits a comprehensive analysis of the company's activity ratios.

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Average number of days

Based on the data provided for Celanese Corporation, we can analyze the activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- The Days of Inventory on Hand show how many days, on average, the company holds its inventory before selling it.
- In the latest available data, the DOH has been increasing over the quarters, indicating a longer time period the inventory is held before being sold.
- It rose from 82.76 days on March 31, 2020, to 104.29 days on December 31, 2024. This suggests potential inefficiencies in inventory management or a change in sales patterns that impact the inventory turnover.

2. Days of Sales Outstanding (DSO):
- Unfortunately, there is no data available for Days of Sales Outstanding in the provided information.
- The DSO ratio typically measures how long it takes for a company to collect payment after a sale is made. It helps gauge the efficiency of the company's credit and collection policies.

3. Number of Days of Payables:
- Similar to DSO, there is no data available for the Number of Days of Payables in the provided information.
- This metric usually indicates how long a company takes to pay its suppliers. A higher number may suggest the company is taking longer to settle its payables, which could indicate favorable cash flow management but may also signal strained relationships with suppliers.

In summary, the increasing trend in Days of Inventory on Hand for Celanese Corporation highlights a potential area for improvement in inventory management practices, while the unavailability of data for DSO and Days of Payables limits a comprehensive analysis of the company's overall activity ratios related to accounts receivable and accounts payable.

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Long-term

The Fixed Asset Turnover ratio for Celanese Corporation has shown fluctuating trends over the period under review. It started at 1.65 in March 2020, decreased to 1.43 in September 2020 and then showed a mixed pattern with peaks at 2.30 in June 2022 and a decrease to 1.73 in December 2022. The ratio declined further to 1.79 in March 2023, while picking up slightly to 1.86 in June 2023, and then stabilizing around 1.83 in the subsequent periods. However, the ratio was not available for the last quarter of 2023 and for the year 2024.

The Total Asset Turnover ratio, on the other hand, displayed a downward trend for most of the period. Starting at 0.64 in March 2020, the ratio fell to 0.52 by December 2020, before recovering to 0.71 in December 2021. However, it decreased sharply to 0.37 in December 2022, before gradually increasing towards 0.45 by September 2024.

Overall, the Fixed Asset Turnover ratio indicates how efficiently Celanese Corporation is utilizing its fixed assets to generate sales, and the fluctuating trend suggests variations in asset utilization efficiency over time. Meanwhile, the Total Asset Turnover ratio reflects the company's ability to generate sales from its total assets, and the downward trend indicates potential challenges in optimizing asset turnover. It would be essential for Celanese to focus on improving asset efficiency to enhance profitability and operational performance in the long term.