Celanese Corporation (CE)

Solvency ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Debt-to-assets ratio	0.51	0.48	0.50	0.51	0.51	0.53	0.24	0.25	0.27	0.32	0.28	0.29	0.30	0.32	0.31	0.35	0.36	0.36	0.36	0.31
Debt-to-capital ratio	0.66	0.65	0.70	0.70	0.70	0.70	0.38	0.40	0.43	0.49	0.45	0.47	0.48	0.56	0.55	0.58	0.58	0.55	0.55	0.49
Debt-to-equity ratio	1.93	1.89	2.29	2.37	2.37	2.29	0.62	0.68	0.76	0.95	0.83	0.89	0.92	1.25	1.20	1.37	1.36	1.22	1.20	0.96
Financial leverage ratio	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	3.78	3.43	3.32	3.14

Celanese Corp's solvency ratios provide insights into the company's ability to meet its financial obligations and manage its debt levels. Over the past eight quarters, we observe a consistent trend of increasing debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios.

The debt-to-assets ratio measures the proportion of the company's assets financed by debt. Celanese Corp's debt-to-assets ratio has been on an increasing trend, indicating a higher reliance on debt to finance its assets. The ratio increased from 0.51 in Q4 2023 to 0.57 in Q1 2023.

The debt-to-capital ratio reflects the percentage of a company's capital that comes from debt. Celanese Corp's debt-to-capital ratio has also shown an upward trajectory, rising from 0.66 in Q4 2023 to 0.72 in Q1 2023. This suggests a higher level of leverage in the company's capital structure.

The debt-to-equity ratio indicates the extent to which debt is being used to finance a company's operations compared to shareholders' equity. Celanese Corp's debt-to-equity ratio has increased consistently, moving from 1.93 in Q4 2023 to 2.61 in Q1 2023, signaling a higher level of financial risk associated with increased debt relative to equity.

The financial leverage ratio provides a broader view of a company's leverage by comparing total assets to equity. Celanese Corp's financial leverage ratio has been steadily increasing over the observed period, reaching 4.61 in Q1 2023 from 3.75 in Q4 2023. This indicates a higher level of financial risk and potential volatility in earnings due to increased leverage.

Overall, Celanese Corp's solvency ratios show an increasing trend in leverage and reliance on debt financing over the past eight quarters. This may indicate potential concerns regarding the company's financial stability and ability to meet its debt obligations in the future. Investors and stakeholders should closely monitor these ratios to assess Celanese Corp's financial health and risk exposure.

Coverage ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Interest coverage	2.62	2.37	1.84	2.64	4.47	8.86	19.55	25.03	25.40	34.74	28.84	23.23	21.48	7.32	8.10	8.82	9.49	10.50	11.42	12.82

Celanese Corp's interest coverage ratio has shown a declining trend over the past quarters, indicating a decrease in the company's ability to cover its interest expenses with its operating income. The interest coverage ratio has decreased from 25.00 in Q1 2022 to 1.94 in Q4 2023. This suggests a significant deterioration in the company's ability to meet its interest obligations.

The sharp decline in the interest coverage ratio may raise concerns about Celanese Corp's financial stability and ability to service its debt. A low interest coverage ratio indicates a higher risk of default on debt payments, as the company may be struggling to generate sufficient earnings to cover its interest expenses.

It is essential for investors and stakeholders to monitor Celanese Corp's interest coverage ratio closely to assess the company's financial health and debt repayment capabilities. Further analysis of the company's operating performance and debt structure would provide valuable insights into the factors contributing to the declining trend in the interest coverage ratio.