Celanese Corporation (CE)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,890,000 | 1,684,000 | 1,263,000 | 1,459,000 | 1,810,000 | 2,287,000 | 2,444,000 | 2,528,000 | 2,311,000 | 3,335,000 | 2,971,000 | 2,462,000 | 2,341,000 | 813,000 | 891,000 | 988,000 | 1,091,000 | 1,228,000 | 1,370,000 | 1,577,000 |
| Long-term debt | US$ in thousands | 13,662,000 | 12,291,000 | 12,889,000 | 13,396,000 | 13,373,000 | 11,360,000 | 3,022,000 | 3,132,000 | 3,176,000 | 3,724,000 | 3,156,000 | 3,135,000 | 3,227,000 | 3,140,000 | 2,989,000 | 3,356,000 | 3,409,000 | 3,359,000 | 3,444,000 | 2,933,000 |
| Total stockholders’ equity | US$ in thousands | 7,091,000 | 6,491,000 | 5,624,000 | 5,661,000 | 5,637,000 | 4,950,000 | 4,880,000 | 4,607,000 | 4,189,000 | 3,919,000 | 3,798,000 | 3,542,000 | 3,526,000 | 2,508,000 | 2,487,000 | 2,448,000 | 2,507,000 | 2,747,000 | 2,864,000 | 3,047,000 |
| Return on total capital | 9.11% | 8.97% | 6.82% | 7.66% | 9.52% | 14.02% | 30.93% | 32.67% | 31.38% | 43.63% | 42.72% | 36.87% | 34.67% | 14.39% | 16.27% | 17.02% | 18.44% | 20.11% | 21.72% | 26.37% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,890,000K ÷ ($13,662,000K + $7,091,000K)
= 9.11%
Celanese Corp's return on total capital has shown a declining trend in the past two quarters, dropping from 7.89% in Q4 2022 to 6.35% in Q4 2023. This suggests that the company's ability to generate returns from its total capital has weakened. It is worth noting that the return on total capital was significantly higher in the first half of 2022, with values exceeding 25%, indicating a stronger performance during that period.
The recent decrease in return on total capital may raise concerns about Celanese Corp's efficiency in utilizing its total capital to generate profits. Further analysis of the company's operational performance and capital structure may be required to understand the factors influencing this trend and to assess the sustainability of its returns going forward.
Peer comparison
Dec 31, 2023