DuPont de Nemours Inc. (NYSE:DD)

Net Operating Profit After Taxes (NOPAT)

The net operating profit after taxes exhibited a significant downward trend from 2015 to 2019. Starting at 8,206 million US dollars in 2015, it sharply declined to 3,846 million in 2016 and continued to decrease to 2,498 million in 2017. Although there was a partial recovery to 4,932 million in 2018, the value turned negative to -572 million in 2019, indicating operational losses.

Invested Capital

Invested capital increased substantially between 2015 and 2018, rising from 46,288 million US dollars to 153,164 million. However, in 2019, invested capital dropped dramatically to 62,770 million. This irregular pattern suggests significant changes in the company's capital base, possibly due to major asset acquisitions or disposals.

Return on Invested Capital (ROIC)

The return on invested capital followed a decreasing trajectory over the analyzed period. It started at a relatively strong 17.73% in 2015 but dropped sharply to 7.6% in 2016 and further declined to as low as 1.67% in 2017. A slight improvement occurred in 2018 to 3.22%, yet the figure turned negative to -0.91% in 2019, reflecting diminished efficiency in generating returns from invested capital.

Operating Profit Margin (OPM)

The operating profit margin displays a declining trend from 2015 to 2019. Starting at 21.25% in 2015, it fell sharply to 11.19% in 2016, then continued to decrease more gradually to 6.97% in 2017 and 8.32% in 2018. By 2019, the margin reached a significantly low value of 0.83%, indicating diminishing profitability over the period.

Turnover of Capital (TO)

Turnover of capital shows a consistent downward trajectory across the years. From a level of 1.05 in 2015, it slightly decreased to 0.95 in 2016, followed by a more pronounced fall in the subsequent years to 0.43 in 2017, 0.56 in 2018, and reaching its lowest point at 0.34 in 2019. This suggests a decreasing efficiency in using capital to generate revenues.

1 – Effective Cash Tax Rate (CTR)

The effective cash tax rate exhibits considerable volatility. It started at a high level of 79.18% in 2015, then declined to 71.36% in 2016 and sharply fell further to 55.32% in 2017. The rate increased again to 68.94% in 2018, before dramatically dropping to a negative value of -318.42% in 2019, which could indicate unusual tax credits, refunds, or accounting adjustments affecting cash taxes.

Return on Invested Capital (ROIC)

Return on invested capital reveals a significant weakening over the examined period. In 2015, ROIC was at 17.73%, then decreased sharply to 7.6% in 2016, continuing downward to 1.67% in 2017. It showed a slight recovery to 3.22% in 2018 but declined further to a negative value of -0.91% in 2019, signaling a return below the cost of invested capital and possible value destruction.

Net Operating Profit Before Taxes (NOPBT)

The net operating profit before taxes exhibits a notable declining trend over the analyzed period. Starting from a high point in 2015, there is a significant drop observed in 2016 and 2017. Although a partial recovery occurs in 2018, the figure drastically decreases again in 2019, reaching a very low level compared to the initial year.

Adjusted Net Sales

Adjusted net sales demonstrate a mixed pattern. The value slightly decreased from 2015 to 2016 but then increased substantially in 2017 and continued to grow notably in 2018, achieving the highest value in the period. However, a sharp decline is observed in 2019, falling below the amounts recorded in the years before 2017.

Operating Profit Margin (OPM)

The operating profit margin shows a clear downward trajectory throughout the period. Starting from a robust margin in 2015, the percentage decreases substantially in 2016 and continues declining through 2017 and 2018. By 2019, the margin reaches a very low level close to zero, indicating severely reduced profitability relative to sales.

The financial data displays significant fluctuations in the company's adjusted net sales, invested capital, and turnover of capital over the five-year period.

Adjusted Net Sales

Adjusted net sales show a notable increase from 48,778 million US dollars in 2015 to a peak of 85,936 million US dollars in 2018, representing strong revenue growth over the initial four years. However, there is an abrupt and profound decline in 2019, with adjusted net sales falling sharply to 21,512 million US dollars, less than a quarter of the 2018 figure. This suggests a major disruption or restructuring event affecting sales performance in the final year.

Invested Capital

Invested capital initially rises moderately from 46,288 million US dollars in 2015 to 50,610 million US dollars in 2016 but then shows a steep increase to 149,192 million US dollars in 2017 and further growth to 153,164 million US dollars in 2018. This doubling of capital indicates substantial investments or acquisitions during this period. In 2019, invested capital decreases markedly to 62,770 million US dollars, yet it remains above the levels reported in 2015 and 2016. The sharp decrease in 2019 could be indicative of divestitures, asset sales, or revaluation.

Turnover of Capital (TO)

The turnover of capital ratio, which measures sales generated per unit of invested capital, declines steadily throughout the period. It starts at 1.05 in 2015, showing efficient utilization of capital with slightly more than one dollar in sales generated per dollar invested. The ratio then decreases to 0.95 in 2016, followed by a more dramatic drop to 0.43 in 2017 and a slight recovery to 0.56 in 2018. In 2019, the turnover ratio falls further to 0.34, indicating decreased efficiency in capital use relative to sales. This trend aligns with the substantial increases in invested capital alongside the eventual collapse in sales, particularly in the last year.

Overall, the data reveal a period of growth supported by heavy capital investment accompanied by declining capital efficiency. The final year results suggest a major contraction in sales and invested capital, which could reflect strategic realignments or external challenges impacting operational scale and capital deployment.

Cash Operating Taxes

The cash operating taxes decreased from 2158 million US dollars in 2015 to 1544 million in 2016, followed by an increase to 2017 million in 2017 and a further rise to 2222 million in 2018. In 2019, there is a significant decline to 751 million. This trend shows variability with a notable drop in the final year of the data period.

Net Operating Profit Before Taxes (NOPBT)

NOPBT started at a high of 10364 million US dollars in 2015, dropped substantially to 5389 million in 2016, and further decreased to 4515 million in 2017. It then increased to 7154 million in 2018 but plunged dramatically to 180 million in 2019. This indicates considerable volatility with an overall downward trend and a steep decline in profitability before taxes in the last year.

Effective Cash Tax Rate (CTR)

The effective cash tax rate showed an upward trend from 20.82% in 2015 to 44.68% in 2017, then decreased to 31.06% in 2018. However, in 2019, the rate increased drastically to an exceptionally high level of 418.42%, suggesting an anomaly or one-time tax effect that severely impacted the tax expense relative to operating profits in that year.

Overall Analysis

The period from 2015 to 2019 exhibited significant fluctuations in operational profitability and tax payments. Both cash operating taxes and NOPBT show volatility, with cash taxes declining sharply in 2019 alongside a collapse in operating profits. The effective cash tax rate corroborates this, with an extraordinary spike in 2019 indicating disproportionate tax expenses or adjustments relative to profit levels. These patterns suggest challenges in maintaining operational profitability and tax efficiency in the most recent year under review.