Celanese Corporation (CE)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -320,000 | 1,344,000 | 1,889,000 | 1,928,000 | 1,903,000 | 1,692,000 | 1,270,000 | 1,476,000 | 1,826,000 | 2,191,000 | 2,367,000 | 2,449,000 | 2,232,000 | 3,366,000 | 2,984,000 | 2,474,000 | 2,360,000 | 832,000 | 913,000 | 1,011,000 |
| Interest expense (ttm) | US$ in thousands | 676,000 | 690,000 | 699,000 | 707,000 | 720,000 | 710,000 | 686,000 | 552,000 | 405,000 | 258,000 | 125,000 | 101,000 | 91,000 | 96,000 | 103,000 | 106,000 | 109,000 | 111,000 | 110,000 | 112,000 |
| Interest coverage | -0.47 | 1.95 | 2.70 | 2.73 | 2.64 | 2.38 | 1.85 | 2.67 | 4.51 | 8.49 | 18.94 | 24.25 | 24.53 | 35.06 | 28.97 | 23.34 | 21.65 | 7.50 | 8.30 | 9.03 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-320,000K ÷ $676,000K
= -0.47
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates the company is more capable of meeting its interest obligations.
Analyzing Celanese Corporation's interest coverage over the stated periods, we observe fluctuations in the ratio. The interest coverage ratio declined from 9.03 in March 2020 to a low of -0.47 in December 2024. This decreasing trend raises concerns about the company's ability to cover its interest expenses.
From December 2021 to September 2022, Celanese Corporation experienced a significant improvement in its interest coverage ratio, peaking at 35.06 in September 2021. However, the ratio then decreased to 1.95 in September 2024, indicating a potential strain on the company's ability to cover its interest payments.
The declining trend in Celanese Corporation's interest coverage raises red flags about its financial health and ability to manage its debt obligations effectively. Investors and stakeholders should closely monitor these ratios to assess the company's financial stability and risk profile.
Peer comparison
Dec 31, 2024