Celanese Corporation (CE)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 962,000 | 1,805,000 | 1,508,000 | 536,000 | 955,000 |
| Short-term investments | US$ in thousands | — | — | — | 10,000 | 533,000 |
| Total current liabilities | US$ in thousands | 3,853,000 | 4,072,000 | 4,068,000 | 2,505,000 | 1,973,000 |
| Cash ratio | 0.25 | 0.44 | 0.37 | 0.22 | 0.75 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($962,000K
+ $—K)
÷ $3,853,000K
= 0.25
The cash ratio is a liquidity ratio that measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents.
For Celanese Corporation, the cash ratio has fluctuated over the past five years:
- In 2020, the cash ratio was 0.75, indicating that the company had $0.75 in cash and cash equivalents for every $1 of current liabilities.
- However, by the end of 2021, the cash ratio decreased significantly to 0.22, suggesting a decline in the company's liquidity position.
- There was a slight improvement in 2022, with the cash ratio increasing to 0.37, but it still remained relatively low.
- By the end of 2023, the cash ratio further improved to 0.44, indicating a better ability to cover short-term obligations with cash reserves.
- However, in 2024, the cash ratio dropped to 0.25, which is lower compared to the previous year.
The trend in Celanese Corporation's cash ratio indicates some variability in its liquidity position over the years. It is important for the company to maintain a healthy cash ratio to ensure it can meet its short-term financial obligations without facing liquidity issues.
Peer comparison
Dec 31, 2024