Microsoft Excel LibreOffice Calc

DuPont de Nemours Inc. (DD)

Long-term Debt and Solvency Analysis

Difficulty: Beginner

Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.

Ratios (Summary)

DuPont de Nemours Inc., debt and solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Debt Ratios
Debt to equity 0.43 0.34 0.82 0.68 0.88
Debt to capital 0.30 0.25 0.45 0.40 0.47
Debt to assets 0.22 0.18 0.27 0.25 0.29
Financial leverage 1.99 1.92 3.06 2.68 3.07
Coverage Ratios
Interest coverage 4.65 2.10 6.14 11.50 6.36
Fixed charge coverage 3.16 1.61 2.90 5.55 3.32

Based on: 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), 10-K (filing date: 2015-02-13).

Ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. DuPont de Nemours Inc.’s debt to equity ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. DuPont de Nemours Inc.’s debt to capital ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. DuPont de Nemours Inc.’s debt to assets ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. DuPont de Nemours Inc.’s financial leverage ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.
Ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. DuPont de Nemours Inc.’s interest coverage ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. DuPont de Nemours Inc.’s fixed charge coverage ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Debt to Equity

DuPont de Nemours Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Notes payable 2,165  1,948  272  454  551 
Long-term debt due within one year 637  2,067  635  541  394 
Long-term debt, excluding debt within one year 37,662  30,056  20,456  16,215  18,838 
Total debt 40,464  34,071  21,363  17,210  19,783 
 
Total DuPont’s stockholders’ equity 94,571  100,330  25,987  25,374  22,423 
Ratio
Debt to equity1 0.43 0.34 0.82 0.68 0.88
Benchmarks
Debt to Equity, Competitors2
Linde plc 0.30 1.50 1.90 2.10 1.65
LyondellBasell Industries N.V. 0.92 0.96 1.48 1.23 0.85
Debt to Equity, Sector
Chemicals 0.42 0.45 1.08 0.95 0.99

Based on: 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), 10-K (filing date: 2015-02-13).

1 2018 Calculation
Debt to equity = Total debt ÷ Total DuPont’s stockholders’ equity
= 40,464 ÷ 94,571 = 0.43

2 Click competitor name to see calculations.

Ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. DuPont de Nemours Inc.’s debt to equity ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.

Debt to Capital

DuPont de Nemours Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Notes payable 2,165  1,948  272  454  551 
Long-term debt due within one year 637  2,067  635  541  394 
Long-term debt, excluding debt within one year 37,662  30,056  20,456  16,215  18,838 
Total debt 40,464  34,071  21,363  17,210  19,783 
Total DuPont’s stockholders’ equity 94,571  100,330  25,987  25,374  22,423 
Total capital 135,035  134,401  47,350  42,584  42,206 
Ratio
Debt to capital1 0.30 0.25 0.45 0.40 0.47
Benchmarks
Debt to Capital, Competitors2
Linde plc 0.23 0.60 0.65 0.68 0.62
LyondellBasell Industries N.V. 0.48 0.49 0.60 0.55 0.46
Debt to Capital, Sector
Chemicals 0.29 0.31 0.52 0.49 0.50

Based on: 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), 10-K (filing date: 2015-02-13).

1 2018 Calculation
Debt to capital = Total debt ÷ Total capital
= 40,464 ÷ 135,035 = 0.30

2 Click competitor name to see calculations.

Ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. DuPont de Nemours Inc.’s debt to capital ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.

Debt to Assets

DuPont de Nemours Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Notes payable 2,165  1,948  272  454  551 
Long-term debt due within one year 637  2,067  635  541  394 
Long-term debt, excluding debt within one year 37,662  30,056  20,456  16,215  18,838 
Total debt 40,464  34,071  21,363  17,210  19,783 
 
Total assets 188,030  192,164  79,511  68,026  68,796 
Ratio
Debt to assets1 0.22 0.18 0.27 0.25 0.29
Benchmarks
Debt to Assets, Competitors2
Linde plc 0.16 0.44 0.49 0.50 0.47
LyondellBasell Industries N.V. 0.33 0.33 0.38 0.35 0.29
Debt to Assets, Sector
Chemicals 0.21 0.22 0.33 0.32 0.32

Based on: 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), 10-K (filing date: 2015-02-13).

1 2018 Calculation
Debt to assets = Total debt ÷ Total assets
= 40,464 ÷ 188,030 = 0.22

2 Click competitor name to see calculations.

Ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. DuPont de Nemours Inc.’s debt to assets ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.

Financial Leverage

DuPont de Nemours Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Total assets 188,030  192,164  79,511  68,026  68,796 
Total DuPont’s stockholders’ equity 94,571  100,330  25,987  25,374  22,423 
Ratio
Financial leverage1 1.99 1.92 3.06 2.68 3.07
Benchmarks
Financial Leverage, Competitors2
Linde plc 1.81 3.40 3.85 4.17 3.52
LyondellBasell Industries N.V. 2.76 2.93 3.88 3.47 2.92
Financial Leverage, Sector
Chemicals 1.98 2.07 3.30 3.00 3.10

Based on: 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), 10-K (filing date: 2015-02-13).

1 2018 Calculation
Financial leverage = Total assets ÷ Total DuPont’s stockholders’ equity
= 188,030 ÷ 94,571 = 1.99

2 Click competitor name to see calculations.

Ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. DuPont de Nemours Inc.’s financial leverage ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.

Interest Coverage

DuPont de Nemours Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Net income attributable to DuPont 3,844  1,460  4,318  7,685  3,772 
Add: Net income attributable to noncontrolling interest 155  132  86  98  67 
Less: Loss from discontinued operations, net of tax (5) (77) —  —  — 
Add: Income tax expense 1,489  (476) 9  2,147  1,426 
Add: Interest expense and amortization of debt discount 1,504  1,082  858  946  983 
Earnings before interest and tax (EBIT) 6,997  2,275  5,271  10,876  6,248 
Ratio
Interest coverage1 4.65 2.10 6.14 11.50 6.36
Benchmarks
Interest Coverage, Competitors2
Linde plc 26.27 15.50 11.99 14.68 12.44
LyondellBasell Industries N.V. 15.75 12.19 17.25 21.03 17.23
Interest Coverage, Sector
Chemicals 8.70 6.20 9.57 13.94 9.67

Based on: 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), 10-K (filing date: 2015-02-13).

1 2018 Calculation
Interest coverage = EBIT ÷ Interest expense
= 6,997 ÷ 1,504 = 4.65

2 Click competitor name to see calculations.

Ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. DuPont de Nemours Inc.’s interest coverage ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.

Fixed Charge Coverage

DuPont de Nemours Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Statutory U.S. federal income tax rate 21.00% 35.00% 35.00% 35.00% 35.00%
Selected Financial Data (USD $ in millions)
Net income attributable to DuPont 3,844  1,460  4,318  7,685  3,772 
Add: Net income attributable to noncontrolling interest 155  132  86  98  67 
Less: Loss from discontinued operations, net of tax (5) (77) —  —  — 
Add: Income tax expense 1,489  (476) 9  2,147  1,426 
Add: Interest expense and amortization of debt discount 1,504  1,082  858  946  983 
Earnings before interest and tax (EBIT) 6,997  2,275  5,271  10,876  6,248 
Add: Rental expense under operating leases, net of sublease rental income 1,042  862  661  600  539 
Earnings before fixed charges and tax 8,039  3,137  5,932  11,476  6,787 
 
Interest expense and amortization of debt discount 1,504  1,082  858  946  983 
Rental expense under operating leases, net of sublease rental income 1,042  862  661  600  539 
Preferred stock dividends —  —  340  340  340 
Preferred stock dividends, tax adjustment1 —  —  183  183  183 
Preferred stock dividends, after tax adjustment —  —  523  523  523 
Fixed charges 2,546  1,944  2,042  2,069  2,045 
Ratio
Fixed charge coverage2 3.16 1.61 2.90 5.55 3.32
Benchmarks
Fixed Charge Coverage, Competitors3
Linde plc 13.92 8.60 7.31 8.29 7.75
LyondellBasell Industries N.V. 7.20 6.90 8.00 9.48 8.48
Fixed Charge Coverage, Sector
Chemicals 5.19 3.83 4.73 6.95 5.22

Based on: 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), 10-K (filing date: 2015-02-13).

1 2018 Calculation
Preferred stock dividends, tax adjustment = (Preferred stock dividends × Statutory U.S. federal income tax rate) ÷ (1 − Statutory U.S. federal income tax rate)
= (0 × 21.00%) ÷ (1 − 21.00%) = 0

2 2018 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 8,039 ÷ 2,546 = 3.16

3 Click competitor name to see calculations.

Ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. DuPont de Nemours Inc.’s fixed charge coverage ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.