Celanese Corporation (CE)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.42 | 3.75 | 4.66 | 2.86 | 3.09 |
Celanese Corporation demonstrates strong solvency ratios as indicated by its debt-to-assets, debt-to-capital, and debt-to-equity ratios, all consistently at 0.00 over the past five years (from December 31, 2020, to December 31, 2024). This implies that the company has a minimal level of debt in relation to its assets, capital, and equity, suggesting a lower risk of financial distress.
However, the financial leverage ratio has shown some fluctuation over the same period. It decreased from 3.09 in 2020 to 2.86 in 2021, indicating lower financial risk associated with debt. Subsequently, there was a significant increase in 2022 to 4.66, which may raise concerns about the company's increased reliance on debt financing. The ratio then decreased to 3.75 in 2023 and increased again to 4.42 in 2024, indicating fluctuations in the company's debt levels and financial risk.
Overall, while Celanese Corporation maintains a solid solvency position with minimal debt relative to its assets, capital, and equity, analysts may want to keep an eye on the trend of the financial leverage ratio to ensure that the company's debt levels remain sustainable and aligned with its overall financial health.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -0.47 | 2.60 | 4.51 | 25.80 | 21.65 |
The interest coverage ratio for Celanese Corporation has shown a positive trend from December 31, 2020, to December 31, 2021, indicating the company's ability to cover its interest obligations. However, there was a significant decrease in the interest coverage ratio from December 31, 2021, to December 31, 2022, and a further decline to December 31, 2023, suggesting potential challenges in meeting its interest payments.
The interest coverage ratio falling below 1 on December 31, 2024, at -0.47 raises concerns as it implies that the company's operating income may not be sufficient to cover its interest expenses, which is a sign of financial distress. It is crucial for Celanese Corporation to closely monitor and address this declining trend to ensure its financial stability and ability to meet its debt obligations in the future.