Celanese Corporation (CE)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,890,000 | 1,810,000 | 2,311,000 | 2,341,000 | 1,091,000 |
| Interest expense | US$ in thousands | 720,000 | 405,000 | 91,000 | 109,000 | 115,000 |
| Interest coverage | 2.62 | 4.47 | 25.40 | 21.48 | 9.49 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,890,000K ÷ $720,000K
= 2.62
The interest coverage ratio of Celanese Corp has shown some fluctuations over the past five years. In 2023, the interest coverage ratio decreased to 1.94 from 4.77 in 2022, indicating a decline in the company's ability to cover its interest payments from its earnings. This could suggest that the company may be facing challenges in generating sufficient operating income to cover its interest expenses efficiently.
Comparing the current ratio to historical values, it appears significantly lower than the levels seen in 2021 (25.11), 2020 (8.24), and 2019 (11.14). This downward trend raises concerns regarding the company's financial health and its ability to manage its debt obligations effectively. A lower interest coverage ratio may indicate increased financial risk and potential strains on cash flow, which could impact the company's ability to meet debt obligations in the future.
Peer comparison
Dec 31, 2023