Celanese Corporation (CE)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 22,857,000 | 25,892,000 | 25,812,000 | 26,033,000 | 26,597,000 | 25,538,000 | 25,649,000 | 26,090,000 | 26,272,000 | 21,337,000 | 12,713,000 | 12,426,000 | 11,975,000 | 11,583,000 | 11,220,000 | 10,756,000 | 10,909,000 | 9,769,000 | 9,506,000 | 9,545,000 |
| Total stockholders’ equity | US$ in thousands | 5,175,000 | 7,274,000 | 7,166,000 | 7,071,000 | 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 |
| Financial leverage ratio | 4.42 | 3.56 | 3.60 | 3.68 | 3.75 | 3.93 | 4.56 | 4.61 | 4.66 | 4.31 | 2.61 | 2.70 | 2.86 | 2.96 | 2.95 | 3.04 | 3.09 | 3.90 | 3.82 | 3.90 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $22,857,000K ÷ $5,175,000K
= 4.42
The financial leverage ratio of Celanese Corporation demonstrates the company's utilization of debt to finance its operations and investments. Over the period from March 31, 2020, to December 31, 2024, the financial leverage ratio has shown a declining trend from 3.90 to 4.42, with fluctuations along the way. A decreasing trend in the financial leverage ratio indicates that the company is relying less on debt financing in comparison to its equity.
During this period, there were fluctuations in the ratio, suggesting varying levels of debt utilization by the company. The ratio peaked at 4.66 on December 31, 2022, indicating a higher proportion of debt in the company's capital structure at that time. Conversely, the ratio decreased to 2.61 on June 30, 2022, before rising again.
The sharp increase in the financial leverage ratio to 4.42 on December 31, 2024, suggests a significant increase in the company's debt relative to equity in its capital structure. This could indicate a strategic decision to take on more debt for financing growth opportunities or other corporate initiatives.
Overall, monitoring the financial leverage ratio can provide insights into Celanese Corporation's capital structure decisions, risk management practices, and financial stability. It is essential for investors and stakeholders to track changes in this ratio to assess the company's financial health and debt management strategies.
Peer comparison
Dec 31, 2024