Celanese Corporation (CE)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 104.29 | 115.18 | 110.45 | 104.65 | 103.19 | 102.22 | 113.99 | 129.94 | 140.53 | 91.37 | 93.61 | 89.25 | 95.01 | 76.69 | 80.82 | 81.99 | 81.84 | 85.71 | 86.49 | 82.76 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 104.29 | 115.18 | 110.45 | 104.65 | 103.19 | 102.22 | 113.99 | 129.94 | 140.53 | 91.37 | 93.61 | 89.25 | 95.01 | 76.69 | 80.82 | 81.99 | 81.84 | 85.71 | 86.49 | 82.76 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 104.29 + — – —
= 104.29
The cash conversion cycle of Celanese Corporation has fluctuated over the past few years, indicating variability in its working capital management efficiency.
From March 2020 to June 2021, the company's cash conversion cycle remained relatively stable, hovering around 80-86 days. This suggests that Celanese was effectively managing its cash, inventory, and accounts receivable during this period.
However, starting from December 2021, the cash conversion cycle increased significantly, reaching its peak at 140.53 days by December 2022. This prolonged cycle indicates that Celanese was taking longer to convert its investments in raw materials and other resources into cash from sales, possibly due to issues with inventory management or slower collections from customers.
From March 2023 to September 2024, there was a gradual improvement in the cash conversion cycle, with the number of days to convert investments into cash decreasing to around 100 days. This demonstrates that Celanese made efforts to streamline its working capital processes and enhance operational efficiency.
Overall, analyzing Celanese Corporation's cash conversion cycle reveals periods of both efficient and inefficient working capital management. It is essential for the company to continuously monitor and optimize its cash conversion cycle to ensure healthy liquidity levels and sustainable business operations.
Peer comparison
Dec 31, 2024