Stock Analysis on Net
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.

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

DuPont de Nemours Inc., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Developed technology 4,343 7,761 7,627 3,254 2,062
Software — 1,529 1,420 1,336 1,253
Trademarks/tradenames 2,433 1,772 1,814 696 666
Customer-related 8,986 14,236 14,537 4,806 3,164
Microbial cell factories — 386 397 — —
Favorable supply contracts — 475 495 — —
Other 303 620 703 168 165
Intangible assets with finite lives, gross carrying amount 16,065 26,779 26,993 10,260 7,310
Accumulated amortization (4,143) (7,414) (5,550) (4,295) (3,770)
Intangible assets with finite lives, net 11,922 19,365 21,443 5,965 3,540
IPR&D — 594 710 61 77
Germplasm — 6,265 6,265 — —
Trademarks/tradenames 1,671 4,741 4,856 — —
Intangible assets with indefinite lives 1,671 11,600 11,831 61 77
Other intangible assets 13,593 30,965 33,274 6,026 3,617
Goodwill 33,151 59,032 59,527 15,272 12,154
Goodwill and other intangible assets 46,744 89,997 92,801 21,298 15,771

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).

Item Description The company
Other intangible assets Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. DuPont de Nemours Inc. other intangible assets decreased from 2017 to 2018 and from 2018 to 2019.
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. DuPont de Nemours Inc. goodwill decreased from 2017 to 2018 and from 2018 to 2019.
Goodwill and other intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. DuPont de Nemours Inc. goodwill and other intangible assets decreased from 2017 to 2018 and from 2018 to 2019.

Adjustments to Financial Statements: Removal of Goodwill

DuPont de Nemours Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Adjustment to Total Assets
Total assets (as reported) 69,396 188,030 192,164 79,511 68,026
Less: Goodwill 33,151 59,032 59,527 15,272 12,154
Total assets (adjusted) 36,245 128,998 132,637 64,239 55,872
Adjustment to Total DuPont Stockholders’ Equity
Total DuPont stockholders’ equity (as reported) 40,987 94,571 100,330 25,987 25,374
Less: Goodwill 33,151 59,032 59,527 15,272 12,154
Total DuPont stockholders’ equity (adjusted) 7,836 35,539 40,803 10,715 13,220
Adjustment to Net Income Attributable To DuPont
Net income attributable to DuPont (as reported) 498 3,844 1,460 4,318 7,685
Add: Goodwill impairment charge 1,175 — 1,491 — —
Net income attributable to DuPont (adjusted) 1,673 3,844 2,951 4,318 7,685

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).

DuPont de Nemours Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

DuPont de Nemours Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net Profit Margin
Reported net profit margin 2.31% 4.47% 2.34% 8.97% 15.76%
Adjusted net profit margin 7.78% 4.47% 4.72% 8.97% 15.76%
Total Asset Turnover
Reported total asset turnover 0.31 0.46 0.33 0.61 0.72
Adjusted total asset turnover 0.59 0.67 0.47 0.75 0.87
Financial Leverage
Reported financial leverage 1.69 1.99 1.92 3.06 2.68
Adjusted financial leverage 4.63 3.63 3.25 6.00 4.23
Return on Equity (ROE)
Reported ROE 1.22% 4.06% 1.46% 16.62% 30.29%
Adjusted ROE 21.35% 10.82% 7.23% 40.30% 58.13%
Return on Assets (ROA)
Reported ROA 0.72% 2.04% 0.76% 5.43% 11.30%
Adjusted ROA 4.62% 2.98% 2.22% 6.72% 13.75%

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).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. DuPont de Nemours Inc. adjusted net profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. DuPont de Nemours Inc. adjusted total asset turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 DuPont de Nemours Inc. adjusted financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. DuPont de Nemours Inc. adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. DuPont de Nemours Inc. adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.

DuPont de Nemours Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to DuPont 498 3,844 1,460 4,318 7,685
Net sales 21,512 85,977 62,484 48,158 48,778
Profitability Ratio
Net profit margin1 2.31% 4.47% 2.34% 8.97% 15.76%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to DuPont 1,673 3,844 2,951 4,318 7,685
Net sales 21,512 85,977 62,484 48,158 48,778
Profitability Ratio
Adjusted net profit margin2 7.78% 4.47% 4.72% 8.97% 15.76%

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).

2019 Calculations

1 Net profit margin = 100 × Net income attributable to DuPont ÷ Net sales
= 100 × 498 ÷ 21,512 = 2.31%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to DuPont ÷ Net sales
= 100 × 1,673 ÷ 21,512 = 7.78%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. DuPont de Nemours Inc. adjusted net profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net sales 21,512 85,977 62,484 48,158 48,778
Total assets 69,396 188,030 192,164 79,511 68,026
Activity Ratio
Total asset turnover1 0.31 0.46 0.33 0.61 0.72
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net sales 21,512 85,977 62,484 48,158 48,778
Adjusted total assets 36,245 128,998 132,637 64,239 55,872
Activity Ratio
Adjusted total asset turnover2 0.59 0.67 0.47 0.75 0.87

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).

2019 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 21,512 ÷ 69,396 = 0.31

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 21,512 ÷ 36,245 = 0.59

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. DuPont de Nemours Inc. adjusted total asset turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Total assets 69,396 188,030 192,164 79,511 68,026
Total DuPont stockholders’ equity 40,987 94,571 100,330 25,987 25,374
Solvency Ratio
Financial leverage1 1.69 1.99 1.92 3.06 2.68
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 36,245 128,998 132,637 64,239 55,872
Adjusted total DuPont stockholders’ equity 7,836 35,539 40,803 10,715 13,220
Solvency Ratio
Adjusted financial leverage2 4.63 3.63 3.25 6.00 4.23

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).

2019 Calculations

1 Financial leverage = Total assets ÷ Total DuPont stockholders’ equity
= 69,396 ÷ 40,987 = 1.69

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total DuPont stockholders’ equity
= 36,245 ÷ 7,836 = 4.63

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 DuPont de Nemours Inc. adjusted financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to DuPont 498 3,844 1,460 4,318 7,685
Total DuPont stockholders’ equity 40,987 94,571 100,330 25,987 25,374
Profitability Ratio
ROE1 1.22% 4.06% 1.46% 16.62% 30.29%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to DuPont 1,673 3,844 2,951 4,318 7,685
Adjusted total DuPont stockholders’ equity 7,836 35,539 40,803 10,715 13,220
Profitability Ratio
Adjusted ROE2 21.35% 10.82% 7.23% 40.30% 58.13%

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).

2019 Calculations

1 ROE = 100 × Net income attributable to DuPont ÷ Total DuPont stockholders’ equity
= 100 × 498 ÷ 40,987 = 1.22%

2 Adjusted ROE = 100 × Adjusted net income attributable to DuPont ÷ Adjusted total DuPont stockholders’ equity
= 100 × 1,673 ÷ 7,836 = 21.35%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. DuPont de Nemours Inc. adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to DuPont 498 3,844 1,460 4,318 7,685
Total assets 69,396 188,030 192,164 79,511 68,026
Profitability Ratio
ROA1 0.72% 2.04% 0.76% 5.43% 11.30%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to DuPont 1,673 3,844 2,951 4,318 7,685
Adjusted total assets 36,245 128,998 132,637 64,239 55,872
Profitability Ratio
Adjusted ROA2 4.62% 2.98% 2.22% 6.72% 13.75%

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).

2019 Calculations

1 ROA = 100 × Net income attributable to DuPont ÷ Total assets
= 100 × 498 ÷ 69,396 = 0.72%

2 Adjusted ROA = 100 × Adjusted net income attributable to DuPont ÷ Adjusted total assets
= 100 × 1,673 ÷ 36,245 = 4.62%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. DuPont de Nemours Inc. adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.