Celanese Corporation (CE)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 89.50 | 124.81 | 85.13 | 72.63 | 71.48 |
| Days of sales outstanding (DSO) | days | 67.86 | 94.21 | 76.53 | 87.33 | 75.63 |
| Number of days of payables | days | 57.34 | 67.47 | 64.80 | 59.19 | 53.72 |
| Cash conversion cycle | days | 100.03 | 151.54 | 96.86 | 100.77 | 93.39 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 89.50 + 67.86 – 57.34
= 100.03
Celanese Corp's cash conversion cycle has exhibited fluctuations over the past five years. In 2023, the company's cash conversion cycle decreased to 96.60 days from 142.07 days in 2022, indicating an improvement in managing its working capital. However, the 2023 figure was still higher than the cycle in 2021, which was 93.96 days. This suggests that the company may have increased its efficiency in converting its resources into cash compared to the prior year but has not yet reached the level achieved in 2021.
In 2020 and 2019, Celanese Corp also had relatively higher cash conversion cycles of 95.31 days and 88.53 days, respectively. The varying cycles across the years indicate fluctuations in the company's ability to manage its cash flow, inventory turnover, and accounts receivable collection.
Overall, while the company's cash conversion cycle improved in 2023 compared to 2022, further analysis is needed to understand the specific factors driving these changes and to assess the company's effectiveness in managing working capital efficiently.
Peer comparison
Dec 31, 2023