Celanese Corporation (CE)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 22,857,000 | 26,597,000 | 26,272,000 | 11,975,000 | 10,909,000 |
| Total stockholders’ equity | US$ in thousands | 5,175,000 | 7,091,000 | 5,637,000 | 4,189,000 | 3,526,000 |
| Financial leverage ratio | 4.42 | 3.75 | 4.66 | 2.86 | 3.09 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $22,857,000K ÷ $5,175,000K
= 4.42
The financial leverage ratio for Celanese Corporation has shown some fluctuations over the past five years. In December 31, 2020, the ratio stood at 3.09, indicating that the company had $3.09 in debt for every $1 of equity. The ratio decreased to 2.86 by December 31, 2021, which suggests a slightly lower reliance on debt compared to the previous year.
However, in December 31, 2022, the financial leverage ratio increased significantly to 4.66, signaling a higher level of debt relative to equity. This spike in leverage may indicate a strategic decision to fund operations or expansions through debt financing.
By December 31, 2023, the ratio decreased to 3.75, showing some reduction in debt levels compared to the previous year. Nevertheless, the ratio increased again to 4.42 by December 31, 2024, suggesting a renewed emphasis on debt financing.
Overall, the financial leverage ratio for Celanese Corporation has fluctuated over the past five years, indicating varying levels of reliance on debt to support the company's operations and growth initiatives. It is essential for investors and stakeholders to closely monitor these changes in leverage ratios to assess the company's financial risk and stability.
Peer comparison
Dec 31, 2024