Celanese Corporation (CE)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -320,000 | 1,875,000 | 1,826,000 | 2,348,000 | 2,360,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,175,000 | 7,091,000 | 5,637,000 | 4,189,000 | 3,526,000 |
| Return on total capital | -6.18% | 26.44% | 32.39% | 56.05% | 66.93% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-320,000K ÷ ($—K + $5,175,000K)
= -6.18%
Celanese Corporation's return on total capital has exhibited a declining trend over the five-year period from December 31, 2020, to December 31, 2024. The return on total capital was notably high at 66.93% in 2020 but gradually decreased to 56.05% in 2021, further declining to 32.39% in 2022, and then to 26.44% in 2023. However, the return on total capital took a negative turn in 2024, dropping to -6.18%.
This declining trend indicates that Celanese Corporation's ability to generate profits from its total capital has weakened over the years, potentially signaling challenges in managing its capital efficiently or achieving profitable returns on investments. It is essential for the company to assess and address the factors contributing to this decline in order to improve its overall financial performance and sustainability.
Peer comparison
Dec 31, 2024