Inventory Disclosure
Adjustment to Inventory: Conversion from LIFO to FIFO
Adjusted Financial Ratios: LIFO vs. FIFO (Summary)
Adjusted Current Ratio
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

DuPont de Nemours Inc., balance sheet: inventory

US$ in millions

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Finished goods	2,621)	9,814)	9,701)	4,230)	3,879)
Work in process	855)	3,969)	4,512)	1,510)	1,502)
Raw materials	599)	1,419)	1,267)	853)	730)
Supplies	244)	1,321)	1,296)	823)	768)
FIFO inventories	4,319)	16,523)	16,776)	7,416)	6,879)
Adjustment of inventories to a LIFO basis	—)	98)	216)	(53)	(8)
Inventories	4,319)	16,621)	16,992)	7,363)	6,871)

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).

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Item	Description	The company
Inventories	Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer.	DuPont de Nemours Inc. inventories decreased from 2017 to 2018 and from 2018 to 2019.

Adjusting LIFO Inventory to FIFO (Current) Cost

US$ in millions

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Adjustment to Inventories
Inventories at LIFO (as reported)	4,319)	16,621)	16,992)	7,363)	6,871)
Add: Inventory LIFO reserve	—)	(98)	(216)	53)	8)
Inventories at FIFO (adjusted)	4,319)	16,523)	16,776)	7,416)	6,879)
Adjustment to Current Assets
Current assets (as reported)	9,999)	49,603)	49,893)	23,659)	24,475)
Add: Inventory LIFO reserve	—)	(98)	(216)	53)	8)
Current assets (adjusted)	9,999)	49,505)	49,677)	23,712)	24,483)
Adjustment to Total Assets
Total assets (as reported)	69,396)	188,030)	192,164)	79,511)	68,026)
Add: Inventory LIFO reserve	—)	(98)	(216)	53)	8)
Total assets (adjusted)	69,396)	187,932)	191,948)	79,564)	68,034)
Adjustment to Total DuPont Stockholders’ Equity
Total DuPont stockholders’ equity (as reported)	40,987)	94,571)	100,330)	25,987)	25,374)
Add: Inventory LIFO reserve	—)	(98)	(216)	53)	8)
Total DuPont stockholders’ equity (adjusted)	40,987)	94,473)	100,114)	26,040)	25,382)
Adjustment to Net Income Attributable To DuPont
Net income attributable to DuPont (as reported)	498)	3,844)	1,460)	4,318)	7,685)
Add: Increase (decrease) in inventory LIFO reserve	—)	118)	(269)	45)	(561)
Net income attributable to DuPont (adjusted)	498)	3,962)	1,191)	4,363)	7,124)

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. inventory value on Dec 31, 2019 would be $4,319) (in millions) if the FIFO inventory method was used instead of LIFO. DuPont de Nemours Inc. inventories, valued on a LIFO basis, on Dec 31, 2019 were $4,319). DuPont de Nemours Inc. inventories would have been $—) higher than reported on Dec 31, 2019 if the FIFO method had been used instead.

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

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DuPont de Nemours Inc., adjusted financial ratios

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Current Ratio
Reported current ratio (LIFO)	1.20	2.01	1.91	1.88	2.18
Adjusted current ratio (FIFO)	1.20	2.00	1.90	1.88	2.18
Net Profit Margin
Reported net profit margin (LIFO)	2.31%	4.47%	2.34%	8.97%	15.76%
Adjusted net profit margin (FIFO)	2.31%	4.61%	1.91%	9.06%	14.60%
Total Asset Turnover
Reported total asset turnover (LIFO)	0.31	0.46	0.33	0.61	0.72
Adjusted total asset turnover (FIFO)	0.31	0.46	0.33	0.61	0.72
Financial Leverage
Reported financial leverage (LIFO)	1.69	1.99	1.92	3.06	2.68
Adjusted financial leverage (FIFO)	1.69	1.99	1.92	3.06	2.68
Return on Equity (ROE)
Reported ROE (LIFO)	1.22%	4.06%	1.46%	16.62%	30.29%
Adjusted ROE (FIFO)	1.22%	4.19%	1.19%	16.75%	28.07%
Return on Assets (ROA)
Reported ROA (LIFO)	0.72%	2.04%	0.76%	5.43%	11.30%
Adjusted ROA (FIFO)	0.72%	2.11%	0.62%	5.48%	10.47%

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 current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	DuPont de Nemours Inc. adjusted current ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
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 improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 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 deteriorated significantly 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 but then decreased significantly 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 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.
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 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

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

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	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Current assets	9,999)	49,603)	49,893)	23,659)	24,475)
Current liabilities	8,346)	24,715)	26,128)	12,604)	11,215)
Liquidity Ratio
Current ratio¹	1.20	2.01	1.91	1.88	2.18
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted current assets	9,999)	49,505)	49,677)	23,712)	24,483)
Current liabilities	8,346)	24,715)	26,128)	12,604)	11,215)
Liquidity Ratio
Adjusted current ratio²	1.20	2.00	1.90	1.88	2.18

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).

2019 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 9,999 ÷ 8,346 = 1.20

² Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 9,999 ÷ 8,346 = 1.20

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Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	DuPont de Nemours Inc. adjusted current ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

	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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income attributable to DuPont	498)	3,962)	1,191)	4,363)	7,124)
Net sales	21,512)	85,977)	62,484)	48,158)	48,778)
Profitability Ratio
Adjusted net profit margin²	2.31%	4.61%	1.91%	9.06%	14.60%

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 × 498 ÷ 21,512 = 2.31%

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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 improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

	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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Net sales	21,512)	85,977)	62,484)	48,158)	48,778)
Adjusted total assets	69,396)	187,932)	191,948)	79,564)	68,034)
Activity Ratio
Adjusted total asset turnover²	0.31	0.46	0.33	0.61	0.72

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 ÷ 69,396 = 0.31

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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 deteriorated significantly from 2018 to 2019.

	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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted total assets	69,396)	187,932)	191,948)	79,564)	68,034)
Adjusted total DuPont stockholders’ equity	40,987)	94,473)	100,114)	26,040)	25,382)
Solvency Ratio
Adjusted financial leverage²	1.69	1.99	1.92	3.06	2.68

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
= 69,396 ÷ 40,987 = 1.69

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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 but then decreased significantly from 2018 to 2019.

	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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income attributable to DuPont	498)	3,962)	1,191)	4,363)	7,124)
Adjusted total DuPont stockholders’ equity	40,987)	94,473)	100,114)	26,040)	25,382)
Profitability Ratio
Adjusted ROE²	1.22%	4.19%	1.19%	16.75%	28.07%

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 × 498 ÷ 40,987 = 1.22%

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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 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

	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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income attributable to DuPont	498)	3,962)	1,191)	4,363)	7,124)
Adjusted total assets	69,396)	187,932)	191,948)	79,564)	68,034)
Profitability Ratio
Adjusted ROA²	0.72%	2.11%	0.62%	5.48%	10.47%

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 × 498 ÷ 69,396 = 0.72%

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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 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

DuPont de Nemours Inc. (NYSE:DD)

Analysis of Inventory

Inventory Disclosure

Adjustment to Inventory: Conversion from LIFO to FIFO

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

Adjusted Financial Ratios: LIFO vs. FIFO (Summary)

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

Adjusted Current Ratio

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)