Celanese Corporation (CE)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.34 | 1.37 | 1.28 | 1.21 | 1.53 | 1.63 | 1.59 | 1.67 | 1.63 | 4.73 | 1.72 | 1.64 | 1.52 | 2.40 | 1.91 | 1.92 | 1.91 | 1.15 | 1.20 | 1.48 |
| Quick ratio | 0.25 | 0.20 | 0.26 | 0.30 | 0.44 | 0.38 | 0.33 | 0.30 | 0.37 | 3.47 | 0.30 | 0.24 | 0.22 | 0.75 | 0.51 | 0.58 | 0.75 | 0.27 | 0.25 | 0.32 |
| Cash ratio | 0.25 | 0.20 | 0.26 | 0.30 | 0.44 | 0.38 | 0.33 | 0.30 | 0.37 | 3.47 | 0.30 | 0.24 | 0.22 | 0.75 | 0.51 | 0.58 | 0.75 | 0.27 | 0.25 | 0.32 |
The current ratio for Celanese Corporation has shown fluctuations over the past few years, ranging from a low of 1.15 in September 2020 to a high of 4.73 in September 2022. This indicates the company's ability to cover its short-term liabilities with its current assets has varied significantly. Generally, a current ratio above 1 indicates good short-term financial health, but extreme fluctuations may warrant further investigation.
The quick ratio, also known as the acid-test ratio, has also exhibited variability for Celanese Corporation, ranging from 0.20 in September 2024 to 3.47 in September 2022. The quick ratio provides a more stringent measure of liquidity as it excludes inventory from current assets. Again, the significant fluctuations in this ratio suggest varying levels of liquidity risk over the years.
The cash ratio, which evaluates the company's ability to meet its short-term obligations using only its most liquid assets (cash and cash equivalents), has also shown fluctuations. This ratio ranged from 0.20 in September 2024 to 3.47 in September 2022, similar to the quick ratio trends. While having a high cash ratio can be indicative of strong liquidity, the fluctuations in Celanese Corporation's cash ratio may imply changing cash management practices or unpredictable cash flows.
In summary, the liquidity ratios of Celanese Corporation have displayed significant variability over the years, indicating fluctuations in the company's short-term financial health and ability to cover its obligations. Further analysis of the underlying reasons for these fluctuations and their potential impact on the company's financial stability would be beneficial for investors and stakeholders.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Celanese Corporation has shown some fluctuations over the reporting periods from March 31, 2020, to December 31, 2024. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
Initially, the cash conversion cycle stood at around 82-86 days in 2020, indicating that the company took approximately 82-86 days to convert its investments into cash. This period slightly decreased to around 76-80 days by September 30, 2021, suggesting improved efficiency in managing its working capital.
However, from December 31, 2021, onwards, the cash conversion cycle started to increase, reaching its peak at 140.53 days by December 31, 2022. This prolonged cycle may indicate challenges in managing inventory, collecting receivables, and paying off liabilities efficiently.
Subsequently, the cash conversion cycle showed some improvement, dropping to around 102-115 days by September 30, 2024. Despite this improvement, the cycle remained higher than the levels observed in the earlier periods, indicating potential ongoing issues in working capital management.
Overall, the fluctuation in Celanese Corporation's cash conversion cycle highlights the importance of closely monitoring the efficiency of its operations in converting investments into cash to ensure optimal working capital management.