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This company was transferred to the archive: financial data is no longer updated!

Return on Capital (ROC)

Advanced level

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company’s 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 LibreOffice Calc
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
Air Products & Chemicals Inc. 12.06% 8.84% 8.14% 10.91% 9.89%
Ecolab Inc. 9.60% 9.93% 7.88% 7.88% 5.69%
Linde plc 2.83% 5.00% 6.78% 7.91% 8.87%

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 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.’s 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 LibreOffice Calc
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 (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 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 LibreOffice Calc
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
Air Products & Chemicals Inc. 28.01% 23.45% 19.84% 23.46% 18.90%
Ecolab Inc. 14.37% 14.32% 14.90% 14.29% 11.38%
Linde plc 11.70% 35.62% 22.08% 21.93% 22.03%

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 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.’s 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 LibreOffice Calc
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
Air Products & Chemicals Inc. 0.53 0.53 0.52 0.63 0.69
Ecolab Inc. 0.82 0.82 0.80 0.80 0.85
Linde plc 0.36 0.18 0.54 0.50 0.53

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 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.’s 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 LibreOffice Calc
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
Air Products & Chemicals Inc. 18.31% 29.51% 21.57% 25.83% 24.15%
Ecolab Inc. 18.93% 15.70% 33.59% 31.45% 41.11%
Linde plc 32.89% 19.80% 42.93% 27.46% 24.15%

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 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.’s CTR decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.