Celanese Corporation (CE)

The solvency ratios of Celanese Corp provide insight into the company's ability to meet its financial obligations and the extent to which it relies on debt financing.

1. Debt-to-assets ratio:
- The debt-to-assets ratio has shown fluctuation over the past five years, ranging from 0.33 to 0.56.
- A decreasing trend from 0.56 in 2022 to 0.51 in 2023 indicates an improvement in the company's ability to cover its assets with debt.

2. Debt-to-capital ratio:
- The debt-to-capital ratio has also exhibited variability, with values ranging from 0.49 to 0.72.
- A decrease from 0.72 in 2022 to 0.66 in 2023 suggests a slightly lower reliance on debt to finance the company's operations.

3. Debt-to-equity ratio:
- The debt-to-equity ratio has shown significant fluctuations, ranging from 0.95 to 2.60.
- Lowering from 2.60 in 2022 to 1.93 in 2023 signifies a decrease in the company's debt compared to equity, indicating improved financial health.

4. Financial leverage ratio:
- The financial leverage ratio has also varied over the years, ranging from 2.86 to 4.66.
- A decline from 4.66 in 2022 to 3.75 in 2023 suggests a reduction in the company's reliance on debt to support its operations.

Overall, the decreasing trends in debt-related ratios such as debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios from 2022 to 2023 indicate an improving solvency position for Celanese Corp, reflecting a more conservative approach to debt management and potential reduction in financial risk.

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Coverage ratios

Celanese Corp's interest coverage ratio has exhibited fluctuations over the past five years. The interest coverage ratio, which calculates the company's ability to meet its interest obligations, stood at 1.94 in 2023, indicating a decline in comparison to the previous year. This decrease may be a cause for concern as it suggests that the company's ability to cover its interest expenses with its earnings has weakened.

In 2022, the interest coverage ratio was 4.77, reflecting a substantial decrease from the exceptionally high ratio of 25.11 in 2021. The significant drop in the interest coverage ratio from 2021 to 2022 suggests a potential deterioration in the company's financial health, as it may face challenges in meeting its interest obligations from operating income.

The slight decrease in the interest coverage ratio from 2020 to 2021, from 8.24 to 25.11, indicates an improvement in Celanese Corp's ability to cover its interest expenses with its operating earnings. This surge in the ratio could be attributed to an increase in operating income or a decrease in interest expenses.

The interest coverage ratio was 8.24 in 2020 and 11.14 in 2019, showing a relatively stable performance during these years. These ratios reflect a moderate ability of the company to fulfill its interest payment obligations with its operating profits.

Overall, the fluctuating trend in Celanese Corp's interest coverage ratio highlights the importance of monitoring the company's ability to meet its interest obligations, as it provides insights into the company's financial health and risk management.