Celanese Corporation (CE)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 105.21 | 103.19 | 140.53 | 95.01 | 81.84 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 105.21 | 103.19 | 140.53 | 95.01 | 81.84 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 105.21 + — – —
= 105.21
The cash conversion cycle of Celanese Corporation has shown fluctuations over the past five years. In December 2020, the company's cash conversion cycle was 81.84 days, indicating a relatively efficient conversion of inventory into cash. However, by December 2022, the cash conversion cycle had increased significantly to 140.53 days, suggesting a longer period for the company to convert its investments in inventory and accounts receivable into cash inflows.
By December 2024, although there was a slight improvement compared to 2022, with the cash conversion cycle standing at 105.21 days, it remained elevated compared to the initial period. This indicates that Celanese Corporation may have faced challenges in managing its working capital effectively during these years.
Overall, the trend in the cash conversion cycle of Celanese Corporation highlights the importance of closely monitoring and managing inventory levels, accounts receivable, and accounts payable to improve cash flow efficiency and optimize the company's liquidity position.
Peer comparison
Dec 31, 2024