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

Company name
Symbol
Cash conversion cycle
Celanese Corporation
CE
100.03
Sealed Air Corporation
SEE
39.60