Celanese Corporation (CE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 22.92% | 23.79% | 24.60% | 31.42% | 22.86% |
| Operating profit margin | -6.78% | 15.42% | 14.25% | 22.79% | 11.74% |
| Pretax margin | -9.69% | 10.81% | 14.69% | 26.33% | 39.81% |
| Net profit margin | -14.81% | 17.92% | 19.58% | 22.14% | 35.10% |
Celanese Corporation's profitability ratios have displayed some fluctuations over the past five years.
1. Gross Profit Margin: The company's gross profit margin improved from 22.86% in 2020 to 31.42% in 2021, indicating efficient cost management. However, it declined in the subsequent years, with a slight recovery in 2024, showing some variability in the company's ability to generate profit from its core business operations.
2. Operating Profit Margin: The operating profit margin experienced a significant increase from 11.74% in 2020 to 22.79% in 2021, reflecting improved operational efficiency. However, it declined in the following years, turning negative in 2024, signaling operational challenges or higher costs impacting profitability.
3. Pretax Margin: The pretax margin was strong at 39.81% in 2020 but decreased to 10.81% in 2023 and turned negative in 2024. This trend suggests a declining ability to generate profit before taxes due to various factors such as increased expenses or lower revenue.
4. Net Profit Margin: The net profit margin followed a similar trend, decreasing from 35.10% in 2020 to -14.81% in 2024. This indicates that the company's bottom-line profitability has deteriorated, potentially due to factors impacting net income such as one-time charges, operational inefficiencies, or economic challenges.
In conclusion, Celanese Corporation has experienced fluctuations in its profitability ratios over the past five years, with some years showing strong profitability and others indicating challenges. It would be important for the company to address the factors contributing to these fluctuations to sustain and improve its overall profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -3.05% | 6.34% | 5.25% | 16.25% | 6.09% |
| Return on assets (ROA) | -6.66% | 7.37% | 7.21% | 15.78% | 18.20% |
| Return on total capital | -6.18% | 26.44% | 32.39% | 56.05% | 66.93% |
| Return on equity (ROE) | -29.41% | 27.64% | 33.60% | 45.12% | 56.30% |
Profitability ratios provide insights into how effectively a company is generating profits relative to its assets and capital.
1. Operating Return on Assets (Operating ROA)
- The Operating ROA for Celanese Corporation fluctuated over the years, ranging from 16.25% in 2021 to -3.05% in 2024. This ratio indicates the company's ability to generate operating profits from its assets, with a higher percentage implying better efficiency.
2. Return on Assets (ROA)
- The ROA also varied, with the highest value of 18.20% in 2020 and the lowest of -6.66% in 2024. This ratio reflects the overall profitability of the company irrespective of operating expenses, showcasing the return earned on total assets.
3. Return on Total Capital
- Celanese Corporation's Return on Total Capital declined significantly over the years, from 66.93% in 2020 to -6.18% in 2024. This ratio assesses the company's ability to generate returns for both equity and debt holders, with lower percentages implying reduced returns relative to the capital invested.
4. Return on Equity (ROE)
- The Return on Equity saw a decreasing trend, from 56.30% in 2020 to -29.41% in 2024. ROE measures the profitability generated for the shareholders, reflecting how efficiently the company is utilizing their equity capital. A negative ROE indicates that the company is not generating profits for its shareholders.
In summary, the profitability ratios for Celanese Corporation have shown fluctuations over the years, with varying levels of efficiency in generating profits from assets, total capital, and equity. It is essential for investors and analysts to closely monitor these ratios to assess the company's performance and financial health.