Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
DuPont de Nemours Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibited a fluctuating trend over the examined periods. Initially, there was a decline from 2.56 in the first quarter of 2016 to approximately 2.0 in the third quarter of the same year. This was followed by a modest recovery reaching 2.18 by mid-2017. However, a sharp decrease occurred in the third quarter of 2017, dropping to 1.53, before partially rebounding toward the end of 2018 with values around 2.4. Notably, an extraordinary spike appeared in the first half of 2019, peaking at 6.66 before a significant drop to 2.12 in the last quarter. This spike suggests an unusual event or revaluation affecting fixed assets or sales volumes during that timeframe.
- Total Asset Turnover
- The total asset turnover ratio demonstrated an overall low efficiency in asset utilization to generate sales throughout the observed period. Starting from 0.69 in early 2016, the ratio gradually declined to a low of 0.28 in late 2017. There was a slight recovery reaching 0.47 by the end of 2018. The ratio again experienced a sudden increase to 0.92 in the first quarter of 2019, followed by a decrease to 0.31 by the end of the same year. This volatility may reflect shifts in asset base management or sales performance fluctuations, possibly influenced by operational changes or external market factors.
- Equity Turnover
- Equity turnover displayed a pattern similar to total asset turnover, indicating variability in how efficiently equity capital was used to generate revenues. The ratio declined from 1.84 in the first quarter of 2016 to a low point of 0.54 in the third quarter of 2017. Thereafter, a gradual improvement was observed, reaching close to 0.91 through the end of 2018. The ratio then surged to 1.56 in the first quarter of 2019 before declining again to 0.52 by year-end 2019. This fluctuation highlights potential changes in equity structure or profitability, possibly reflecting adjustments in financing or operational strategies during this timeframe.
Net Fixed Asset Turnover
DuPont de Nemours Inc., net fixed asset turnover calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net sales | (9,031) | 5,426) | 5,468) | 19,649) | 20,099) | 20,123) | 24,245) | 21,510) | 20,066) | 15,354) | 13,834) | 13,230) | 13,020) | 12,483) | 11,952) | 10,703) | |||||
| Property, plant and equipment, net of accumulated depreciation | 10,143) | 9,699) | 9,806) | 35,575) | 35,848) | 35,228) | 35,224) | 36,076) | 36,247) | 36,219) | 24,116) | 23,768) | 23,486) | 23,311) | 22,783) | 18,420) | |||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Net fixed asset turnover1 | 2.12 | 5.22 | 6.66 | 2.36 | 2.40 | 2.44 | 2.30 | 1.96 | 1.72 | 1.53 | 2.18 | 2.13 | 2.05 | 2.00 | 2.03 | 2.56 | |||||
| Benchmarks | |||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||
| Linde plc | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Sherwin-Williams Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
1 Q4 2019 Calculation
Net fixed asset turnover
= (Net salesQ4 2019
+ Net salesQ3 2019
+ Net salesQ2 2019
+ Net salesQ1 2019)
÷ Property, plant and equipment, net of accumulated depreciation
= (-9,031 + 5,426 + 5,468 + 19,649)
÷ 10,143 = 2.12
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several noteworthy trends regarding net sales, property, plant, and equipment (PP&E), and net fixed asset turnover over the examined periods.
- Net Sales
- Net sales displayed a generally increasing trend from March 2016 through December 2018, rising from approximately 10,703 million US dollars to a peak of around 24,245 million US dollars in the second quarter of 2018. Following this peak, however, net sales experienced a significant decline, particularly notable in 2019. By the fourth quarter of 2019, net sales had turned negative, dropping to -9,031 million US dollars, which indicates a substantial downturn or possibly the effect of an extraordinary event during this period.
- Property, Plant and Equipment (PP&E), Net
- PP&E values, net of accumulated depreciation, showed a gradual increase from 18,420 million US dollars in the first quarter of 2016 to a level exceeding 36,000 million US dollars by late 2017. This relatively stable elevated level persisted through 2018, remaining close to 35,000 million US dollars. In 2019, however, the asset base appears to have been drawn down significantly in the first half of the year, falling to levels near 9,700 million US dollars before a slight increase to approximately 10,143 million US dollars at year-end. This pattern suggests possible asset disposals, impairments, or structural changes in the company's asset base during 2019.
- Net Fixed Asset Turnover
- Net fixed asset turnover, calculated as the ratio of net sales to net fixed assets, exhibited an overall downward trend from 2.56 in early 2016 to a low point near 1.53 in the third quarter of 2017. Subsequently, it improved steadily, reaching over 2.4 in late 2018 and maintaining stability around this level into early 2019. An anomalous spike occurred in the first two quarters of 2019, with ratios jumping to 6.66 and then 5.22, likely reflecting the sharp decline in net fixed assets relative to net sales during this period. By the end of 2019, the ratio normalized back to about 2.12. This volatility indicates significant changes in asset efficiency metrics, potentially driven by the fluctuations observed in net sales and asset base.
In summary, the data portray a period of steady growth in sales and asset investment through 2017 and 2018, followed by considerable volatility in 2019. The sharp decrease in net sales alongside the reduction in net fixed assets and the corresponding swings in net fixed asset turnover suggest that 2019 was a year of substantial operational or structural upheaval. These changes warrant further investigation to understand their causes and potential implications fully.
Total Asset Turnover
DuPont de Nemours Inc., total asset turnover calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net sales | (9,031) | 5,426) | 5,468) | 19,649) | 20,099) | 20,123) | 24,245) | 21,510) | 20,066) | 15,354) | 13,834) | 13,230) | 13,020) | 12,483) | 11,952) | 10,703) | |||||
| Total assets | 69,396) | 70,119) | 70,843) | 189,785) | 188,030) | 184,453) | 187,367) | 192,441) | 192,164) | 198,527) | 82,247) | 80,828) | 79,511) | 80,624) | 81,524) | 68,440) | |||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Total asset turnover1 | 0.31 | 0.72 | 0.92 | 0.44 | 0.46 | 0.47 | 0.43 | 0.37 | 0.33 | 0.28 | 0.64 | 0.63 | 0.61 | 0.58 | 0.57 | 0.69 | |||||
| Benchmarks | |||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||
| Linde plc | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Sherwin-Williams Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
1 Q4 2019 Calculation
Total asset turnover
= (Net salesQ4 2019
+ Net salesQ3 2019
+ Net salesQ2 2019
+ Net salesQ1 2019)
÷ Total assets
= (-9,031 + 5,426 + 5,468 + 19,649)
÷ 69,396 = 0.31
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company's performance over the observed periods.
- Net Sales
- Net sales exhibited a general upward trend from early 2016 through 2018, increasing from approximately 10,703 million USD in the first quarter of 2016 to peaks above 24,000 million USD in the middle of 2018. This growth phase showed fluctuations but remained strong until a sharp decline appears in the first quarters of 2019, culminating in a negative value in the last reported quarter of 2019, suggesting significant revenue contraction or correction.
- Total Assets
- Total assets rose steadily from roughly 68,440 million USD at the start of 2016 to a peak approaching 198,000 million USD in 2017. This substantial increase coincided with the period of rapid sales growth. Following this peak, the asset base stabilized around 188,000 to 192,000 million USD through the end of 2018 and then sharply decreased to around 69,300 million USD by the end of 2019, mirroring the decline observed in net sales.
- Total Asset Turnover
- The total asset turnover ratio displayed initial moderate stability, fluctuating between 0.57 and 0.69 in 2016 and 2017. However, with the significant rise in total assets in 2017, the turnover ratio dropped sharply to around 0.28, indicating reduced efficiency in utilizing assets to generate sales. A gradual recovery is noted through 2018, reaching approximately 0.47 by year-end, though a decline resumes in 2019. The ratio briefly improves to 0.92 in early 2019, potentially reflecting the sales decline against the reduced asset base, but then falls to as low as 0.31 by the end of 2019, suggesting inefficiencies or structural shifts in asset utilization.
Overall, the data indicates a period of expansion in assets and sales culminating in late 2017 and early 2018, followed by a contraction phase through 2019 marked by declining sales and asset base. The fluctuations in asset turnover ratio signify changing operational efficiency, with diminished productivity during rapid asset growth and mixed results during contraction. These patterns suggest the company underwent significant business changes affecting scale and asset management efficiency within the timeframe.
Equity Turnover
DuPont de Nemours Inc., equity turnover calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net sales | (9,031) | 5,426) | 5,468) | 19,649) | 20,099) | 20,123) | 24,245) | 21,510) | 20,066) | 15,354) | 13,834) | 13,230) | 13,020) | 12,483) | 11,952) | 10,703) | |||||
| Total DuPont’s stockholders’ equity | 40,987) | 41,344) | 42,006) | 92,444) | 94,571) | 98,090) | 98,262) | 101,260) | 100,330) | 102,946) | 28,421) | 27,060) | 25,987) | 29,035) | 28,936) | 25,599) | |||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Equity turnover1 | 0.52 | 1.22 | 1.56 | 0.91 | 0.91 | 0.88 | 0.83 | 0.70 | 0.62 | 0.54 | 1.85 | 1.87 | 1.85 | 1.60 | 1.60 | 1.84 | |||||
| Benchmarks | |||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||
| Linde plc | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Sherwin-Williams Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
1 Q4 2019 Calculation
Equity turnover
= (Net salesQ4 2019
+ Net salesQ3 2019
+ Net salesQ2 2019
+ Net salesQ1 2019)
÷ Total DuPont’s stockholders’ equity
= (-9,031 + 5,426 + 5,468 + 19,649)
÷ 40,987 = 0.52
2 Click competitor name to see calculations.
The analysis of the financial data over the reported periods reveals several key trends and observations regarding the company's performance and equity efficiency.
- Net Sales
- Net sales demonstrated a general upward trajectory from the first quarter of 2016 through the end of 2017, increasing from approximately $10.7 billion to a peak of over $20 billion in the fourth quarter of 2017. This significant growth was followed by continued strength in sales through the first three quarters of 2018, although with some volatility in the fourth quarter of that year and the first quarter of 2019. Notably, in the final two quarters reported (Q3 and Q4 of 2019), net sales experienced a sharp decline, culminating in a negative value by the end of 2019, indicating either a restatement, returned revenue, or other accounting anomaly impacting this period.
- Total Stockholders’ Equity
- Total stockholders’ equity showed an increasing trend initially, rising notably between the first quarter of 2016 and the third quarter of 2017, with equity almost quadrupling to an anomalous peak exceeding $100 billion. Following this peak, the equity remained relatively stable but gradually decreased over the subsequent periods. The reduction accelerated in 2019, with equity falling sharply by mid-year and continuing a slight decline towards the fourth quarter. By the end of the data series, equity had decreased significantly compared to the peak periods, indicating possible share buybacks, dividends, losses, or other equity-related transactions.
- Equity Turnover Ratio
- The equity turnover ratio, which measures how efficiently the company utilizes its equity to generate sales, experienced fluctuations throughout the periods. The ratio started around 1.8 in early 2016, showing moderate efficiency, but then dropped significantly during the peak equity period in 2017, falling below 1.0 and reaching its lowest around 0.54 to 0.62. This suggests that the dramatic increase in equity was not matched by proportional increases in sales, diluting efficiency. Later, the ratio gradually improved in late 2018 and early 2019, rising back towards 0.9, and then sharply increasing again in mid-2019. However, by the end of 2019, efficiency dropped sharply to 0.52, corresponding to the substantial drop in net sales and equity, indicating considerable operational or financial challenges during that time.
Overall, the data reflect a period of rapid growth and expansion in both sales and equity followed by an unusual surge in equity that did not translate into higher sales efficiency. The final periods show signs of financial distress or restructuring, with dramatic declines in sales and equity alongside erratic changes in operational efficiency. These patterns suggest a significant shift in the company’s financial position and performance commencing in 2019.