Celanese Corporation (CE)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.22% | 25.46% | 31.49% | 23.17% | 25.56% |
| Operating profit margin | 15.70% | 14.74% | 22.85% | 11.90% | 13.27% |
| Pretax margin | 10.89% | 15.03% | 26.06% | 40.00% | 15.53% |
| Net profit margin | 18.24% | 20.26% | 22.19% | 35.57% | 13.56% |
Celanese Corp's profitability ratios show fluctuating trends over the past five years. The gross profit margin, which indicates the efficiency of production and cost management, has shown a decreasing trend from 31.42% in 2021 to 23.79% in 2023. This decline may be a concern as it suggests a potential decrease in the company's ability to control production costs.
The operating profit margin, a measure of operating efficiency, has also shown a decreasing trend from 22.70% in 2021 to 11.13% in 2023. This indicates that the company's operational expenses are increasing faster than its revenues.
The pretax margin, which represents the proportion of each dollar of revenue that translates into pre-tax income, has fluctuated notably over the years. It drastically dropped from 39.81% in 2020 to 10.81% in 2023. This suggests significant fluctuations in the company's ability to generate profits before taxes.
Lastly, the net profit margin, which indicates the company's overall profitability after all expenses are taken into account, has shown a similar fluctuating trend. Although it increased from 13.53% in 2019 to 19.58% in 2022, it declined to 17.92% in 2023. This implies that the company's bottom-line profitability has been somewhat inconsistent.
Overall, the profitability ratios of Celanese Corp suggest a mixed performance, with declining trends in some key metrics. It is important for the company to closely monitor and address the factors impacting its profitability to ensure sustained financial health.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.34% | 5.25% | 16.25% | 6.09% | 8.80% |
| Return on assets (ROA) | 7.37% | 7.21% | 15.78% | 18.20% | 8.99% |
| Return on total capital | 9.11% | 9.52% | 31.38% | 34.67% | 18.44% |
| Return on equity (ROE) | 27.64% | 33.60% | 45.12% | 56.30% | 33.98% |
Celanese Corp's profitability ratios have shown fluctuations over the past five years.
1. Operating return on assets (Operating ROA) indicates the company's ability to generate operating profit from its assets. In 2021, Celanese Corp saw a sharp decline in its Operating ROA to 16.18%, followed by a decrease to 4.58% in 2023. This decline may signal challenges in efficiently utilizing its assets to generate operating income.
2. Return on assets (ROA) measures the overall return generated from all assets. Celanese Corp's ROA peaked at 18.20% in 2020 but dropped to 7.37% in 2023. This decline might suggest a reduction in overall profitability relative to the total assets employed.
3. Return on total capital shows the return generated from all capital invested in the company. In 2021, Celanese Corp achieved a high return of 25.55%, but this figure decreased to 6.35% in 2023. The decreasing trend may indicate challenges in generating returns relative to the total invested capital.
4. Return on equity (ROE) measures the return generated for equity shareholders. Celanese Corp's ROE has shown fluctuations, with 2021 and 2022 recording high ROE figures of 45.12% and 33.60%, respectively. However, in 2023, the ROE dropped to 27.64%. This decrease in ROE may suggest a decline in profitability relative to shareholders' equity.
Overall, the trend in Celanese Corp's profitability ratios indicates fluctuations and challenges in maintaining consistent levels of profitability over the past five years. Further analysis is needed to identify the factors driving these changes and assess the company's long-term profitability prospects.