Celanese Corporation (CE)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 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 1.58 1.85 2.04 1.58
Quick ratio 0.93 0.90 0.83 0.90 0.96 4.05 1.01 0.99 0.93 1.71 1.35 1.36 1.43 0.71 0.71 0.92 1.03 1.18 1.29 1.00
Cash ratio 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 0.29 0.34 0.37 0.26

The liquidity ratios of Celanese Corp, as reflected in the current, quick, and cash ratios, show fluctuations over the quarters provided.

The current ratio, which indicates the company's ability to meet short-term obligations with its current assets, has been ranging between 1.53 and 1.67 in the most recent quarters. While the ratio has been above 1, suggesting that Celanese Corp has sufficient current assets to cover its current liabilities, it has shown some volatility.

The quick ratio, a more stringent measure of liquidity as it excludes inventory from current assets, has also displayed variability, with values between 0.90 and 0.98 in the recent quarters. This ratio indicates the company's ability to meet short-term obligations without relying on selling inventory.

The cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents as current assets, has ranged from 0.36 to 0.51 in the most recent quarters. This ratio reveals the company's ability to cover its current liabilities with its readily available cash resources.

Overall, while the current, quick, and cash ratios of Celanese Corp have shown fluctuations, it is essential for stakeholders to monitor these ratios consistently to ensure the company maintains adequate liquidity to meet its short-term obligations effectively.

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 103.28 109.61 123.91 142.61 151.53 90.77 92.75 95.19 96.87 88.35 102.02 101.58 100.77 93.66 99.29 91.91 93.42 86.87 86.94 91.09

The cash conversion cycle of Celanese Corp has varied over the past eight quarters. It measures the time in days it takes for the company to convert its investments in inventory and other resources into cash from sales to customers, then reinvest that cash back into inventory. A shorter cash conversion cycle indicates better liquidity and efficiency in managing working capital.

In Q1 2022, the cash conversion cycle was at its lowest at 97.16 days, showing the company's ability to efficiently manage its working capital. However, in Q1 2023, the cycle increased significantly to 146.16 days, indicating potential challenges in converting resources to cash.

During Q2 and Q3 2023, the cash conversion cycle continued to lengthen, reaching 127.21 days and 111.98 days, respectively. This trend suggests potential inefficiencies in managing inventory and collecting receivables during these periods.

In Q4 2023, there was a slight improvement as the cash conversion cycle decreased to 96.60 days compared to the previous two quarters. This could indicate efforts to streamline operations and improve working capital management.

Overall, Celanese Corp should focus on optimizing its cash conversion cycle to enhance its liquidity position and operational efficiency, ensuring timely conversion of resources into cash to support its business operations effectively.