Stock Analysis on Net

DuPont de Nemours Inc. (NYSE:DD)

This company has been moved to the archive! The financial data has not been updated since February 14, 2020.

Return on Capital (ROC)

Microsoft Excel

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.


Return on Invested Capital (ROIC)

DuPont de Nemours Inc., ROIC calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 (572) 4,932 2,498 3,846 8,206
Invested capital2 62,770 153,164 149,192 50,610 46,288
Performance Ratio
ROIC3 -0.91% 3.22% 1.67% 7.60% 17.73%
Benchmarks
ROIC, Competitors4
Linde plc 3.08%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

1 NOPAT. See details »

2 Invested capital. See details »

3 2019 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × -572 ÷ 62,770 = -0.91%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. DuPont de Nemours Inc. ROIC improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Decomposition of ROIC

DuPont de Nemours Inc., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2019 -0.91% = 0.83% × 0.34 × -318.42%
Dec 31, 2018 3.22% = 8.32% × 0.56 × 68.94%
Dec 31, 2017 1.67% = 6.97% × 0.43 × 55.32%
Dec 31, 2016 7.60% = 11.19% × 0.95 × 71.36%
Dec 31, 2015 17.73% = 21.25% × 1.05 × 79.18%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the decrease in return on invested capital (ROIC) over 2019 year is the increase in effective cash tax rate (CTR).


Operating Profit Margin (OPM)

DuPont de Nemours Inc., OPM calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 (572) 4,932 2,498 3,846 8,206
Add: Cash operating taxes2 751 2,222 2,017 1,544 2,158
Net operating profit before taxes (NOPBT) 180 7,154 4,515 5,389 10,364
 
Net sales 21,512 85,977 62,484 48,158 48,778
Add: Increase (decrease) in deferred revenue (41) 2,332
Adjusted net sales 21,512 85,936 64,816 48,158 48,778
Profitability Ratio
OPM3 0.83% 8.32% 6.97% 11.19% 21.25%
Benchmarks
OPM, Competitors4
Linde plc 12.41%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2019 Calculation
OPM = 100 × NOPBT ÷ Adjusted net sales
= 100 × 180 ÷ 21,512 = 0.83%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. DuPont de Nemours Inc. OPM improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Turnover of Capital (TO)

DuPont de Nemours Inc., TO calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net sales 21,512 85,977 62,484 48,158 48,778
Add: Increase (decrease) in deferred revenue (41) 2,332
Adjusted net sales 21,512 85,936 64,816 48,158 48,778
 
Invested capital1 62,770 153,164 149,192 50,610 46,288
Efficiency Ratio
TO2 0.34 0.56 0.43 0.95 1.05
Benchmarks
TO, Competitors3
Linde plc 0.36

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

1 Invested capital. See details »

2 2019 Calculation
TO = Adjusted net sales ÷ Invested capital
= 21,512 ÷ 62,770 = 0.34

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. DuPont de Nemours Inc. TO improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Effective Cash Tax Rate (CTR)

DuPont de Nemours Inc., CTR calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 (572) 4,932 2,498 3,846 8,206
Add: Cash operating taxes2 751 2,222 2,017 1,544 2,158
Net operating profit before taxes (NOPBT) 180 7,154 4,515 5,389 10,364
Tax Rate
CTR3 418.42% 31.06% 44.68% 28.64% 20.82%
Benchmarks
CTR, Competitors4
Linde plc 31.01%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2019 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 751 ÷ 180 = 418.42%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. DuPont de Nemours Inc. CTR decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.