DuPont de Nemours Inc. (NYSE:DD)

Return on Assets (ROA)

The Return on Assets exhibits a significant declining trend over the analyzed period. Starting from a high of 11.3% in 2015, the ROA decreases sharply to 5.43% in 2016 and then plunges further to very low levels of 0.76% in 2017. There is a modest recovery in 2018 when ROA rises to 2.04%, followed by a slight decline to 0.72% in 2019. Overall, the trend indicates a considerable reduction in the efficiency with which assets generate earnings.

Financial Leverage

Financial leverage shows a decreasing pattern from 2016 onward. It begins at 2.68 in 2015 and peaks at 3.06 in 2016. Following this, there is a marked reduction reaching 1.92 in 2017, and then a moderate increase to 1.99 in 2018 before declining again to 1.69 by 2019. This suggests a gradual reduction in the reliance on debt financing in later years compared to the peak in 2016.

Return on Equity (ROE)

The Return on Equity declines in a manner similar to ROA, indicating diminishing profitability from shareholders' perspective. Starting at 30.29% in 2015, it drops drastically to 16.62% in 2016, then falls nearly to negligible levels at 1.46% in 2017. Although there is some recovery to 4.06% in 2018, ROE falls again to 1.22% in 2019. This trend reflects weakening returns for equity holders across the period, consistent with declining asset returns and lower leverage.

Net Profit Margin

The Net Profit Margin shows a clear downward trend over the five-year period. Starting at 15.76% in 2015, it declined sharply to 8.97% in 2016, followed by a further decrease to 2.34% in 2017. It slightly improved to 4.47% in 2018 before dropping again to 2.31% in 2019. This indicates a consistent reduction in profitability relative to sales.

Asset Turnover

Asset Turnover ratio demonstrates a declining trend, starting at 0.72 in 2015 and decreasing to 0.31 by 2019. The ratio fell notably from 0.61 in 2016 to 0.33 in 2017, showing a reduced efficiency in using assets to generate revenue over the period.

Financial Leverage

Financial Leverage fluctuated during the period but generally decreased overall. It rose from 2.68 in 2015 to 3.06 in 2016, then decreased substantially to 1.92 in 2017. The ratio remained relatively stable around 1.99 in 2018 and further dropped to 1.69 in 2019. This pattern indicates a reduction in the use of debt relative to equity after an initial increase.

Return on Equity (ROE)

Return on Equity experienced a significant downward trend. Beginning at a high of 30.29% in 2015, ROE declined steeply to 16.62% in 2016, then dropped dramatically to 1.46% in 2017. A modest recovery occurred in 2018 with a rise to 4.06%, followed by a decline to 1.22% in 2019. This reflects diminishing profitability as it relates to shareholders' equity.

The financial ratios over the five-year period reveal significant fluctuations and overall declining trends in profitability and efficiency metrics, despite some variability in tax and interest burdens.

Tax Burden

There was a notable increase in the tax burden from 0.78 in 2015 to a peak of 1.48 in 2017, indicating higher taxes relative to earnings before tax in that year. However, it then reverted to 0.72 in 2018 and stabilized at 0.78 in 2019, suggesting a return to earlier levels.

Interest Burden

The interest burden showed a declining trend overall, falling from 0.91 in 2015 to 0.49 by 2019. This indicates a reduction in earnings lost to interest expenses relative to operating income, which could reflect lower debt costs or reduced interest-bearing liabilities.

EBIT Margin

The EBIT margin experienced a sharp decline from 22.1% in 2015 to 3.31% in 2017, signaling a marked decrease in operating profitability. Although there was some recovery to 7.95% in 2018, the margin declined again to 6.07% in 2019, remaining substantially below the 2015 level.

Asset Turnover

Asset turnover deteriorated from 0.72 in 2015 to as low as 0.31 in 2019, demonstrating a reduced efficiency in generating revenue from asset base over time. The lowest ratio was recorded in 2019 after some minor fluctuations.

Financial Leverage

Financial leverage ratios declined from 3.06 in 2016 to 1.69 in 2019, reflecting a decreasing reliance on debt or equity financing to support assets. This reduction could affect returns but also reduce financial risk.

Return on Equity (ROE)

ROE showed a dramatic decrease from a strong 30.29% in 2015 to just 1.22% by 2019. This fall corresponds with reduced profitability and asset efficiency, emphasizing significant pressures on shareholder returns throughout the period.

Overall, the data indicates a challenging period characterized by declining operating profitability, diminished asset efficiency, and substantially reduced shareholder returns. Improvements in interest burden and decreasing financial leverage suggest some efforts to manage financial costs and risks, but these have not translated into better profitability or enhanced returns on equity.

The analysis of the financial performance over the five-year period reveals notable fluctuations across key profitability and efficiency ratios.

Net Profit Margin

The net profit margin shows a declining trend overall, starting at 15.76% in 2015 and decreasing to 2.31% by 2019. This represents a significant reduction in profitability relative to sales revenues. The margin notably dropped in 2017 to 2.34%, followed by a slight recovery in 2018 to 4.47%, but resumed its downward trajectory in 2019.

Asset Turnover

The asset turnover ratio, which reflects the efficiency in generating sales from assets, declined from 0.72 in 2015 to 0.31 in 2019. This indicates a worsening efficiency, with the company's ability to generate revenue from its assets almost halved in this period. The ratio fell most sharply in 2017, continuing a general pattern of deterioration despite a slight improvement in 2018.

Return on Assets (ROA)

The return on assets mirrored the downward trends in both net profit margin and asset turnover. Beginning at a robust 11.3% in 2015, ROA decreased substantially to 0.72% by 2019. This suggests that the company struggled to generate earnings relative to its asset base over the years, with the most pronounced decrease occurring between 2015 and 2017.

Overall, the data reflects a company experiencing declining profitability and operational efficiency over the five-year timeframe. The simultaneous drops in net profit margin and asset turnover notably eroded the return on assets, highlighting challenges in both cost control and asset utilization.

The financial data reveals several notable trends over the five-year period analyzed.

Tax Burden

The tax burden ratio exhibited variability, peaking at 1.48 in 2017 before declining to 0.72 in 2018 and stabilizing around 0.78 by 2019. This suggests fluctuations in the effective tax rate impacting net profits, with 2017 being an outlier year in terms of tax burden.

Interest Burden

The interest burden ratio showed a declining trend, dropping from 0.91 in 2015 to as low as 0.48 in 2017 and remaining below 0.5 in 2019. This indicates increasing interest expenses or financial charges relative to earnings before interest and taxes, constraining profitability from operating income to net income.

EBIT Margin

Earnings before interest and taxes margin declined substantially from 22.1% in 2015 to single-digit margins in subsequent years, reaching the lowest point at 3.31% in 2017. Though there was some improvement after 2017, it remained below 8% by 2019, signaling reduced operational profitability across the period.

Asset Turnover

The asset turnover ratio steadily decreased from 0.72 in 2015 to 0.31 in 2019, indicating diminishing efficiency in utilizing assets to generate sales. This trend reflects possible challenges in revenue generation relative to asset base expansion or retention.

Return on Assets (ROA)

ROA mirrored the negative trends seen in operating margins and asset turnover, dropping sharply from 11.3% in 2015 to below 1% in both 2017 and 2019, with a minor rebound to 2.04% in 2018. This decline underscores the company's decreasing ability to generate net income from its asset investments over the evaluated timeframe.

Overall, the data indicates a period of decreasing profitability and operational efficiency, characterized by lower margins, reduced asset utilization, and higher relative interest burdens. These factors collectively contributed to a significant decline in returns on assets, pointing to underlying challenges in maintaining financial performance during these years.

The financial data indicates notable fluctuations across several profitability and burden ratios over the analyzed period.

Tax Burden Ratio

The tax burden exhibits variability, initially starting at 0.78 in 2015, rising sharply to a peak of 1.48 in 2017, followed by a decline to 0.72 in 2018 and a moderate recovery to 0.78 in 2019. This pattern suggests irregular tax efficiencies or possible changes in tax regulation or deferred tax accounting affecting the effective tax rate.

Interest Burden Ratio

This ratio shows a decreasing trend from 0.91 in 2015 to a low of 0.48 in 2017, a slight improvement to 0.78 in 2018, and then a decline again to 0.49 in 2019. The drop implies that interest expenses consumed a growing portion of earnings before interest and taxes during the middle years, indicating rising financial costs or leverage, with partial relief in 2018 but renewed pressure in 2019.

EBIT Margin

The earnings before interest and taxes margin notably declines from 22.1% in 2015 to a low of 3.31% in 2017, showing a severe contraction in operating profitability. There is modest recovery in 2018 to 7.95%, and a slight decrease again to 6.07% in 2019. This suggests operational challenges and cost pressures during the timeframe, with limited improvement, but overall considerably reduced efficiency compared to 2015.

Net Profit Margin

Net profitability demonstrates a similar downward trend, decreasing steeply from 15.76% in 2015 to 2.34% in 2017. There is a slight rebound to 4.47% in 2018, after which the margin falls again to 2.31% in 2019. The low levels of net profit margin in the later years indicate reduced ability to convert revenues into net income, reflecting both operational and financial pressures affecting bottom-line profitability.

Overall, the data reveals a significant deterioration in operating and net profitability between 2015 and 2017, accompanied by increasing interest costs relative to earnings. Although some recovery in margins is observed in 2018, the gains are not sustained into 2019, suggesting ongoing difficulties in improving profitability and managing financial burdens.