Celanese Corporation (CE)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 10,280,000 | 10,479,000 | 10,554,000 | 10,698,000 | 10,940,000 | 10,719,000 | 10,297,000 | 9,988,000 | 9,673,000 | 9,600,000 | 9,565,000 | 9,277,000 | 8,537,000 | 7,853,000 | 6,998,000 | 5,993,000 | 5,655,000 | 5,496,000 | 5,671,000 | 6,070,000 |
| Total current assets | US$ in thousands | 5,145,000 | 5,706,000 | 5,904,000 | 5,945,000 | 6,218,000 | 5,887,000 | 6,252,000 | 6,448,000 | 6,611,000 | 13,192,000 | 4,459,000 | 4,200,000 | 3,807,000 | 4,355,000 | 4,061,000 | 3,710,000 | 3,763,000 | 2,771,000 | 2,709,000 | 2,855,000 |
| Total current liabilities | US$ in thousands | 3,853,000 | 4,159,000 | 4,626,000 | 4,925,000 | 4,072,000 | 3,616,000 | 3,922,000 | 3,851,000 | 4,068,000 | 2,788,000 | 2,595,000 | 2,554,000 | 2,505,000 | 1,812,000 | 2,129,000 | 1,935,000 | 1,973,000 | 2,409,000 | 2,262,000 | 1,928,000 |
| Working capital turnover | 7.96 | 6.77 | 8.26 | 10.49 | 5.10 | 4.72 | 4.42 | 3.85 | 3.80 | 0.92 | 5.13 | 5.64 | 6.56 | 3.09 | 3.62 | 3.38 | 3.16 | 15.18 | 12.69 | 6.55 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $10,280,000K ÷ ($5,145,000K – $3,853,000K)
= 7.96
The working capital turnover ratio measures how effectively a company utilizes its working capital to generate revenue. A higher ratio indicates efficient management of working capital.
Analyzing Celanese Corporation's working capital turnover from March 31, 2020, to December 31, 2024, we notice fluctuations in the ratio. The ratio peaked at 15.18 on September 30, 2020, showing effective utilization of working capital during that period. However, the ratio decreased significantly towards the end of 2020, dropping to 3.16 on December 31, 2020, indicating a possible change in working capital management strategies.
Throughout 2021 and the first half of 2022, the ratio remained relatively stable but at a lower level, ranging between 3.09 and 5.64. This suggests that the company maintained a moderate level of efficiency in working capital turnover during these periods.
By the end of September 2022, the working capital turnover ratio dropped significantly to 0.92, indicating a potential issue in managing working capital efficiently. However, the ratio gradually improved throughout 2023, reaching 5.10 by December 31, 2023, and further increasing to 10.49 by March 31, 2024. These improvements suggest a more effective use of working capital to generate revenue.
In the latter half of 2024, the ratio slightly decreased but remained relatively high, ranging from 6.77 to 8.26, indicating ongoing efficiency in working capital turnover for Celanese Corporation.
Overall, Celanese Corporation's working capital turnover ratio has shown fluctuations over the analyzed period, with some periods of significant efficiency and others where improvements were needed. Monitoring this ratio can help evaluate the company's working capital management effectiveness and its impact on revenue generation.
Peer comparison
Dec 31, 2024