Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

DuPont de Nemours Inc. (NYSE:DD)

This company was transferred to the archive: financial data is no longer updated!

Financial Reporting Quality: Aggregate Accruals

Advanced level

Earnings can be decomposed into cash and accrual components. The accrual component (aggregate accruals) has been found to have less persistence than the cash component, and therefore (1) earnings with higher accrual component are less persistent than earnings with smaller accrual component, all else equal; and (2) the cash component of earnings should receive a higher weighting evaluating company performance.


Balance-Sheet-Based Accruals Ratio

DuPont de Nemours Inc., balance sheet computation of aggregate accruals

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Operating Assets
Total assets 69,396  188,030  192,164  79,511  68,026 
Less: Cash and cash equivalents 1,540  13,482  13,438  6,607  8,577 
Less: Marketable securities —  134  956  —  — 
Operating assets 67,856  174,414  177,770  72,904  59,449 
Operating Liabilities
Total liabilities 27,840  91,851  90,237  52,282  41,843 
Less: Short-term borrowings and finance lease obligations 3,830  2,802  4,015  907  995 
Less: Long-term debt, excluding debt within one year 13,617  37,662  30,056  20,456  16,215 
Operating liabilities 10,393  51,387  56,166  30,919  24,633 
 
Net operating assets1 57,463  123,027  121,604  41,985  34,816 
Balance-sheet-based aggregate accruals2 (65,564) 1,423  79,619  7,169 
Financial Ratio
Balance-sheet-based accruals ratio3 -72.65% 1.16% 97.34% 18.67%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Air Products & Chemicals Inc. 2.36% 13.72% -13.09% -8.93% -4.03%
Ecolab Inc. -0.61% 1.24% 10.45% -0.17%
Linde plc -7.70% 128.02% 3.15% 3.19%
Balance-Sheet-Based Accruals Ratio, Sector
Chemicals -5.23% 81.05% 1.16% -1.71%
Balance-Sheet-Based Accruals Ratio, Industry
Basic Materials 8.57% 68.46% -1.58% -8.49%

Based on: 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-11), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-12).

1 2019 Calculation
Net operating assets = Operating assets – Operating liabilities
= 67,85610,393 = 57,463

2 2019 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2019 – Net operating assets2018
= 57,463123,027 = -65,564

3 2019 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × -65,564 ÷ [(57,463 + 123,027) ÷ 2] = -72.65%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, DuPont de Nemours Inc. deteriorated earnings quality from 2018 to 2019.

Cash-Flow-Statement-Based Accruals Ratio

DuPont de Nemours Inc., cash flow statement computation of aggregate accruals

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income attributable to DuPont 498  3,844  1,460  4,318  7,685 
Less: Cash provided by operating activities 1,409  4,731  8,695  5,478  7,516 
Less: Cash (used for) provided by investing activities (2,313) (2,462) 4,274  (3,479) (1,350)
Cash-flow-statement-based aggregate accruals 1,402  1,575  (11,509) 2,319  1,519 
Financial Ratio
Cash-flow-statement-based accruals ratio1 1.55% 1.29% -14.07% 6.04%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Air Products & Chemicals Inc. 7.43% 5.27% 16.82% -8.84% 3.30%
Ecolab Inc. 2.26% 1.22% 7.75% 0.89%
Linde plc -7.68% -11.19% -3.27% 3.50%
Cash-Flow-Statement-Based Accruals Ratio, Sector
Chemicals -4.09% -5.72% 6.24% -1.22%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Basic Materials -2.34% -5.23% 1.90% -5.38%

Based on: 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-11), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-12).

1 2019 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × 1,402 ÷ [(57,463 + 123,027) ÷ 2] = 1.55%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, DuPont de Nemours Inc. deteriorated earnings quality from 2018 to 2019.