Return on Equity (ROE)
since 2005
Calculation
DuPont de Nemours Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income attributable to DuPont1 | ÷ | Total DuPont stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2019 | 1.22% | = | 100 | × | 498) | ÷ | 40,987) |
| Dec 31, 2018 | 4.06% | = | 100 | × | 3,844) | ÷ | 94,571) |
| Dec 31, 2017 | 1.46% | = | 100 | × | 1,460) | ÷ | 100,330) |
| Dec 31, 2016 | 16.62% | = | 100 | × | 4,318) | ÷ | 25,987) |
| Dec 31, 2015 | 30.29% | = | 100 | × | 7,685) | ÷ | 25,374) |
| Dec 31, 2014 | 16.82% | = | 100 | × | 3,772) | ÷ | 22,423) |
| Dec 31, 2013 | 17.80% | = | 100 | × | 4,787) | ÷ | 26,898) |
| Dec 31, 2012 | 5.66% | = | 100 | × | 1,182) | ÷ | 20,877) |
| Dec 31, 2011 | 12.31% | = | 100 | × | 2,742) | ÷ | 22,281) |
| Dec 31, 2010 | 10.58% | = | 100 | × | 2,310) | ÷ | 21,839) |
| Dec 31, 2009 | 3.15% | = | 100 | × | 648) | ÷ | 20,555) |
| Dec 31, 2008 | 4.29% | = | 100 | × | 579) | ÷ | 13,511) |
| Dec 31, 2007 | 14.89% | = | 100 | × | 2,887) | ÷ | 19,389) |
| Dec 31, 2006 | 21.82% | = | 100 | × | 3,724) | ÷ | 17,065) |
| Dec 31, 2005 | 29.46% | = | 100 | × | 4,515) | ÷ | 15,324) |
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), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The financial performance from 2005 to 2019 is characterized by significant volatility in profitability and substantial shifts in the capital base, which heavily influenced the Return on Equity (ROE).
- Profitability and ROE Cycles
- A cyclical pattern is evident in the ROE, which began at a high of 29.46% in 2005 before declining sharply to a trough of 3.15% in 2009. This decline correlates with a significant reduction in net income, which dropped from 4,515 million US$ in 2005 to 648 million US$ in 2009. A subsequent recovery period peaked in 2015, where ROE reached its highest point in the sequence at 30.29%, driven by a peak in net income of 7,685 million US$.
- Impact of Equity Expansion
- A structural shift in the balance sheet occurred in 2017, marked by a drastic increase in total stockholders' equity to 100,330 million US$, compared to 25,987 million US$ in 2016. This expansion of the equity base caused a sharp compression of the ROE, which fell to 1.46% in 2017 despite the company remaining profitable. The diluted ROE persisted through 2018 and 2019, reflecting a period where the capital base far exceeded the earnings generated.
- Recent Performance Trends
- The period ending in 2019 shows a downward trajectory in both absolute earnings and efficiency. Net income declined precipitously to 498 million US$ in 2019, the lowest level since 2009. Although stockholders' equity decreased to 40,987 million US$ by the end of 2019, the decline in net income was more pronounced, resulting in an ROE of 1.22%, the lowest recorded value in the analyzed timeframe.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
DuPont de Nemours Inc., ROE, long-term trends, comparison to competitors
| DuPont de Nemours Inc. | Linde plc | Sherwin-Williams Co. | |
|---|---|---|---|
| Dec 31, 2019 | 1.22% | 4.66% | 37.38% |
| Dec 31, 2018 | 4.06% | 8.49% | 29.72% |
| Dec 31, 2017 | 1.46% | 20.72% | 48.00% |
| Dec 31, 2016 | 16.62% | 29.87% | 60.30% |
| Dec 31, 2015 | 30.29% | 35.25% | 121.42% |
| Dec 31, 2014 | 16.82% | 30.13% | 86.90% |
| Dec 31, 2013 | 17.80% | 26.55% | 42.41% |
| Dec 31, 2012 | 5.66% | 27.90% | 35.22% |
| Dec 31, 2011 | 12.31% | 30.47% | 29.13% |
| Dec 31, 2010 | 10.58% | 20.63% | 28.74% |
| Dec 31, 2009 | 3.15% | 23.59% | 29.23% |
| Dec 31, 2008 | 4.29% | 30.21% | 29.70% |
| Dec 31, 2007 | 14.89% | 22.89% | 34.47% |
| Dec 31, 2006 | 21.82% | 21.70% | 28.91% |
| Dec 31, 2005 | 29.46% | 18.61% | 26.77% |
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), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Chemicals)
DuPont de Nemours Inc., ROE, long-term trends, comparison to sector (chemicals)
| DuPont de Nemours Inc. | Chemicals | |
|---|---|---|
| Dec 31, 2019 | 1.22% | 7.19% |
| Dec 31, 2018 | 4.06% | 9.92% |
| Dec 31, 2017 | 1.46% | 31.09% |
| Dec 31, 2016 | 16.62% | 38.16% |
| Dec 31, 2015 | 30.29% | 49.47% |
| Dec 31, 2014 | 16.82% | 38.67% |
| Dec 31, 2013 | 17.80% | 29.91% |
| Dec 31, 2012 | 5.66% | 29.57% |
| Dec 31, 2011 | 12.31% | 30.18% |
| Dec 31, 2010 | 10.58% | 22.39% |
| Dec 31, 2009 | 3.15% | 24.83% |
| Dec 31, 2008 | 4.29% | 30.06% |
| Dec 31, 2007 | 14.89% | 25.88% |
| Dec 31, 2006 | 21.82% | 23.89% |
| Dec 31, 2005 | 29.46% | 21.11% |
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), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Materials)
DuPont de Nemours Inc., ROE, long-term trends, comparison to industry (materials)
| DuPont de Nemours Inc. | Materials | |
|---|---|---|
| Dec 31, 2019 | 1.22% | 5.74% |
| Dec 31, 2018 | 4.06% | 12.42% |
| Dec 31, 2017 | 1.46% | 27.34% |
| Dec 31, 2016 | 16.62% | -11.75% |
| Dec 31, 2015 | 30.29% | -73.64% |
| Dec 31, 2014 | 16.82% | 5.03% |
| Dec 31, 2013 | 17.80% | 17.62% |
| Dec 31, 2012 | 5.66% | 21.12% |
| Dec 31, 2011 | 12.31% | 29.47% |
| Dec 31, 2010 | 10.58% | 30.11% |
| Dec 31, 2009 | 3.15% | 27.87% |
| Dec 31, 2008 | 4.29% | -82.36% |
| Dec 31, 2007 | 14.89% | 18.96% |
| Dec 31, 2006 | 21.82% | 33.59% |
| Dec 31, 2005 | 29.46% | 29.22% |
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), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).