Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
DuPont de Nemours Inc., profitability 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), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
- Gross Profit Margin
- The gross profit margin exhibits a generally upward trend from March 31, 2015, through December 31, 2019. Starting at 22.43% in early 2015, it steadily increases with minor fluctuations, reaching a notably high peak of 34.66% by the end of 2019. This indicates an improvement in the company's efficiency in managing production costs relative to sales over the observed periods.
- Operating Profit Margin
- The operating profit margin shows considerable volatility throughout the periods. It begins at 11.36% in the first quarter of 2015, dips to around 7% by mid-2017, then experiences a significant decline, even turning negative to -0.2% by the final quarter of 2019. The lowest margins are observed in 2018 and 2019, suggesting increased operational challenges or higher operating expenses relative to revenue during these years.
- Net Profit Margin
- The net profit margin follows a decreasing trajectory from 2015 to 2017, starting at 15.76% and dropping to approximately 5% by the end of 2017. It stabilizes at lower levels thereafter, fluctuating between approximately 1.4% and 4.5% from 2018 into 2019, with a slight upward trend towards the final quarter. This trend reflects diminishing profitability after accounting for all expenses, taxes, and interest, possibly impacted by operational difficulties or increased costs.
- Return on Equity (ROE)
- ROE experiences a marked decline over the analyzed timeframe. Beginning at a robust 30.29% in early 2015, it decreases steadily, falling sharply after 2017 and reaching a low of 1.22% by the end of 2019. This downward trend suggests weakening efficiency in generating shareholder returns from equity, potentially due to reduced net income or changes in equity structure.
- Return on Assets (ROA)
- ROA trends downward in a pattern similar to ROE. Starting from 11.3% in the first quarter of 2015, it falls to below 1% by the end of 2017. A mild recovery is noted through 2018 and early 2019, but performance declines again, ending at 0.72% in the last quarter of 2019. This indicates a diminishing ability to generate profit from company assets over time.
Return on Sales
Return on Investment
Gross Profit Margin
DuPont de Nemours Inc., gross profit margin 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 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Gross margin | (1,334) | 1,895) | 1,972) | 4,923) | 4,532) | 4,646) | 6,271) | 5,195) | 2,777) | 3,184) | 3,073) | 3,036) | 2,446) | 2,642) | 2,677) | 2,752) | 2,656) | 2,687) | 2,764) | 2,835) | ||||||
| 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) | 11,462) | 12,036) | 12,910) | 12,370) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Gross profit margin1 | 34.66% | 26.31% | 24.60% | 24.22% | 24.01% | 21.98% | 21.47% | 20.11% | 19.32% | 21.18% | 21.30% | 21.31% | 21.84% | 23.02% | 23.34% | 23.05% | 22.43% | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Gross Profit Margin, 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), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Gross profit margin = 100
× (Gross marginQ4 2019
+ Gross marginQ3 2019
+ Gross marginQ2 2019
+ Gross marginQ1 2019)
÷ (Net salesQ4 2019
+ Net salesQ3 2019
+ Net salesQ2 2019
+ Net salesQ1 2019)
= 100 × (-1,334 + 1,895 + 1,972 + 4,923)
÷ (-9,031 + 5,426 + 5,468 + 19,649)
= 34.66%
2 Click competitor name to see calculations.
- Gross Margin
- The gross margin exhibits fluctuations throughout the periods analyzed. Initially, it decreased from 2835 million US$ in March 2015 to 2446 million US$ in December 2016. Following this, there was a significant increase, peaking at 6271 million US$ in June 2018, before declining again to negative 1334 million US$ in December 2019. This indicates considerable volatility, with substantial gains particularly in 2018 and a sharp reversal at the end of 2019.
- Net Sales
- Net sales displayed an overall increasing trend from March 2015 through December 2017, rising from 12,370 million US$ to 20,066 million US$. The upward trend accelerated in 2018, reaching a peak of 24,245 million US$ in June 2018. However, the latter part of the data shows a sharp decline, with sales falling drastically to negative values by December 2019, indicating a potential issue affecting revenue generation or accounting adjustments in that quarter.
- Gross Profit Margin Percentage
- The gross profit margin percentage was only reported starting in March 2016. It generally trended upward, beginning at 22.43% and gradually increasing to 26.31% by September 2019. This suggests an improvement in cost efficiency or pricing power over time. The notable exception is the final data point of December 2019, where the margin rose to 34.66%, coinciding with the negative gross margin in monetary terms, hinting at unusual or non-recurring factors impacting the financials in that quarter.
- Overall Analysis
- The data reflects significant volatility in both gross margin and net sales during the period from 2015 to 2019. The strong growth in sales and gross margin through mid-2018 suggests successful operational or market conditions, followed by a sudden deterioration in late 2019. The steady increase in gross profit margin percentage generally indicates improving profitability on sales, despite the notable inconsistencies encountered at the end of the timeline. This pattern points to external or internal disruptions affecting the company's financial performance in the most recent quarter.
Operating Profit Margin
DuPont de Nemours Inc., operating profit margin 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 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Operating income (loss) | (695) | 505) | (813) | 960) | 592) | 992) | 2,300) | 1,520) | (3,609) | 895) | 1,664) | 1,595) | (160) | 1,217) | 915) | 1,548) | 1,352) | 1,511) | 1,078) | 1,598) | ||||||
| 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) | 11,462) | 12,036) | 12,910) | 12,370) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Operating profit margin1 | -0.20% | 2.46% | 2.65% | 5.76% | 6.29% | 1.40% | 1.36% | 0.66% | 0.87% | 7.20% | 8.21% | 7.04% | 7.31% | 10.80% | 11.54% | 11.65% | 11.36% | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Operating Profit Margin, 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), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Operating profit margin = 100
× (Operating income (loss)Q4 2019
+ Operating income (loss)Q3 2019
+ Operating income (loss)Q2 2019
+ Operating income (loss)Q1 2019)
÷ (Net salesQ4 2019
+ Net salesQ3 2019
+ Net salesQ2 2019
+ Net salesQ1 2019)
= 100 × (-695 + 505 + -813 + 960)
÷ (-9,031 + 5,426 + 5,468 + 19,649)
= -0.20%
2 Click competitor name to see calculations.
The financial data reveals several notable trends in the quarterly performance.
- Operating Income (Loss)
- The operating income shows considerable volatility throughout the observed periods. Initially, the values demonstrate moderate fluctuations with positive incomes ranging from 915 to 1598 million USD during 2015 and early 2016. However, starting in late 2016, the company experienced a significant negative operating income of -160 million USD and a further severe decline in the fourth quarter of 2017 with -3609 million USD. Post-2017, the operating income returned to positive territory for some quarters but again showed instability, including negative results in the second and fourth quarters of 2019. Overall, the pattern indicates instability in profitability, with notable losses in key periods interrupting generally positive results.
- Net Sales
- Net sales demonstrate a trend of growth until late 2018, reaching a peak in the fourth quarter of 2017 and maintaining high levels through 2018. Sales increased steadily from approximately 12,370 million USD in early 2015 to a peak of 24,245 million USD in the third quarter of 2018. After this peak, a significant decline is observed, with sales dropping precipitously to 5,468 million USD in the first quarter of 2019 and further declining to negative values in the fourth quarter of 2019. This abrupt drop suggests a major disruption or change, possibly divestitures, accounting adjustments, or reporting anomalies affecting the reported sales figures toward the end of the period.
- Operating Profit Margin
- The operating profit margin was positive and relatively stable through 2015 and 2016, maintaining levels between approximately 7% and 11%. In late 2017, margins drastically declined, demonstrating low single-digit values close to zero and even dipping to negative levels in the final quarter of 2019. The margin trend correlates closely with the volatility observed in operating income and net sales, reinforcing the interpretation of operational challenges impacting profitability in recent quarters.
In summary, the data reveals a company facing fluctuating operating profits accompanied by an unusual spike and subsequent steep decline in net sales near the end of the timeframe. Such patterns may suggest significant strategic, operational, or market-driven changes impacting financial performance. Caution is advised in interpreting recent quarters due to the extremity of changes in both sales and profitability.
Net Profit Margin
DuPont de Nemours Inc., net profit margin 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 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net income (loss) available for DuPont | 177) | 372) | (571) | 520) | 475) | 497) | 1,768) | 1,104) | (1,263) | 514) | 1,321) | 888) | 52) | 804) | 3,208) | 254) | 3,612) | 1,375) | 1,220) | 1,478) | ||||||
| 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) | 11,462) | 12,036) | 12,910) | 12,370) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Net profit margin1 | 2.31% | 1.57% | 1.41% | 3.88% | 4.47% | 2.45% | 2.62% | 2.37% | 2.34% | 5.01% | 5.83% | 9.77% | 8.97% | 16.91% | 18.31% | 13.71% | 15.76% | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Net Profit Margin, 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), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Net profit margin = 100
× (Net income (loss) available for DuPontQ4 2019
+ Net income (loss) available for DuPontQ3 2019
+ Net income (loss) available for DuPontQ2 2019
+ Net income (loss) available for DuPontQ1 2019)
÷ (Net salesQ4 2019
+ Net salesQ3 2019
+ Net salesQ2 2019
+ Net salesQ1 2019)
= 100 × (177 + 372 + -571 + 520)
÷ (-9,031 + 5,426 + 5,468 + 19,649)
= 2.31%
2 Click competitor name to see calculations.
- Net Income (Loss) Trends
- The net income available for the company shows considerable volatility throughout the period analyzed. Initially, in early 2015, net income figures were strong, with values consistently above 1,000 million US dollars during the first three quarters. However, a marked increase is observed in the last quarter of 2015, surging to 3,612 million, followed by a sharp drop in the first quarter of 2016 to 254 million. The subsequent quarters of 2016 show fluctuating income, with a notable spike again in mid-2016 at 3,208 million, and a significant reduction toward the end of that year. From 2017 onward, the trend continues to be erratic, including a quarter with a loss (negative income) in the last quarter of 2017, where net income stands at -1,263 million. There are further declines and recoveries in net income through 2018 and 2019, with negative results recurring in the mid-to-late 2019 period. Overall, the data indicate unstable profitability and high volatility in net income.
- Net Sales Patterns
- Net sales show a generally increasing trend over the analyzed quarters until late 2018. From approximately 12,000 million US dollars in early 2015, net sales steadily grow, reaching a peak in the third quarter of 2018 at about 24,245 million US dollars, indicating strong top-line growth during this period. After this peak, sales decline markedly from late 2018 through 2019, with the last two quarters showing substantial negative values (-9,031 million in Q3 2019 and -9,031 million in Q4 2019), which suggests possible accounting adjustments, extraordinary items, or reporting anomalies impacting the sales figures in these periods.
- Net Profit Margin Observations
- The net profit margin percentages are only available starting from the fourth quarter of 2015. Initial margins are relatively strong, ranging from approximately 13.7% to 18.3% in late 2015 and early 2016. However, moving into 2017, margins decline significantly, dropping to below 6% and remaining quite low through 2018. The margin remains between approximately 2% and 4.5% during 2018 and 2019, reflecting decreased profitability relative to sales. The pattern matches the net income volatility and sales fluctuations suggesting periods of pressure on earnings quality and overall operational efficiency.
- Overall Insights
- The financial data indicate a period of expansion in sales until late 2018, accompanied by high fluctuations in net income and declining profit margins over time. The volatility in net income alongside periods of negative income points to challenges in maintaining consistent profitability. The sharp sales reductions and reported negative values in 2019 require further investigation to understand their nature and impact on financial stability. Overall, despite growing sales in earlier years, profitability metrics suggest increased cost pressures or other financial dynamics affecting earnings quality.
Return on Equity (ROE)
DuPont de Nemours Inc., ROE 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 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net income (loss) available for DuPont | 177) | 372) | (571) | 520) | 475) | 497) | 1,768) | 1,104) | (1,263) | 514) | 1,321) | 888) | 52) | 804) | 3,208) | 254) | 3,612) | 1,375) | 1,220) | 1,478) | ||||||
| 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) | 25,374) | 24,333) | 23,612) | 22,237) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| ROE1 | 1.22% | 1.93% | 2.19% | 3.53% | 4.06% | 2.15% | 2.16% | 1.66% | 1.46% | 2.70% | 10.78% | 18.30% | 16.62% | 27.13% | 29.20% | 25.24% | 30.29% | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| ROE, 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), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
ROE = 100
× (Net income (loss) available for DuPontQ4 2019
+ Net income (loss) available for DuPontQ3 2019
+ Net income (loss) available for DuPontQ2 2019
+ Net income (loss) available for DuPontQ1 2019)
÷ Total DuPont’s stockholders’ equity
= 100 × (177 + 372 + -571 + 520)
÷ 40,987 = 1.22%
2 Click competitor name to see calculations.
The net income available for the company exhibited significant volatility over the analyzed periods. Initially, net income demonstrated solid positive figures, reaching a notable peak of 3,612 million US dollars at the end of 2015. However, subsequent quarters showed a downturn with sharp declines, including a substantial loss in the final quarter of 2017, where net income dropped to -1,263 million US dollars. This trend fluctuated in the following years, with some quarters returning to profitability but overall indicating inconsistency and instability in earnings performance, culminating in a relatively low net income near the end of 2019.
Total stockholders’ equity showed a general upward trend in the earlier periods up to mid-2017, increasing from approximately 22,237 million to over 102,946 million US dollars, suggesting significant capital growth or asset accumulation during this timeframe. However, from late 2017 onward, equity values reversed direction and declined steadily, falling to below 41,000 million US dollars by the end of 2019. This downward movement may reflect asset write-downs, dividends, share repurchases, or losses impacting the equity base.
Return on Equity (ROE) percentages were only available starting from late 2015. At that time, ROE was relatively high, peaking above 29%, indicative of strong profitability relative to shareholders’ equity. Nevertheless, ROE gradually diminished over the subsequent periods, with marked declines commencing in 2017 and continuing through 2019. By the end of the analyzed timeframe, ROE had reduced to approximately 1.22%, highlighting a significant decrease in the company’s ability to generate returns on equity.
Overall, the data reflects a period of initial growth and profitability followed by increasing earnings volatility, declining equity values, and weakening return on equity metrics. This suggests challenges impacting financial stability and efficiency in later periods, warranting further examination of operational factors, market conditions, or strategic decisions affecting financial performance.
Return on Assets (ROA)
DuPont de Nemours Inc., ROA 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 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net income (loss) available for DuPont | 177) | 372) | (571) | 520) | 475) | 497) | 1,768) | 1,104) | (1,263) | 514) | 1,321) | 888) | 52) | 804) | 3,208) | 254) | 3,612) | 1,375) | 1,220) | 1,478) | ||||||
| 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) | 68,026) | 69,884) | 69,334) | 67,789) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| ROA1 | 0.72% | 1.14% | 1.30% | 1.72% | 2.04% | 1.14% | 1.13% | 0.87% | 0.76% | 1.40% | 3.73% | 6.13% | 5.43% | 9.77% | 10.36% | 9.44% | 11.30% | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| ROA, 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), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
ROA = 100
× (Net income (loss) available for DuPontQ4 2019
+ Net income (loss) available for DuPontQ3 2019
+ Net income (loss) available for DuPontQ2 2019
+ Net income (loss) available for DuPontQ1 2019)
÷ Total assets
= 100 × (177 + 372 + -571 + 520)
÷ 69,396 = 0.72%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in profitability, asset base, and return on assets (ROA) over the observed periods.
- Net Income (Loss) Available
- The net income values exhibit considerable volatility throughout the periods. Initially, net income showed positive values with a peak of 3612 million US dollars at the end of 2015. Subsequently, results fluctuate significantly, with notable declines including a loss of 1263 million US dollars in December 2017. Recovery periods are also present, for example, in the first half of 2018, where net income improved to over 1700 million US dollars. However, losses reoccur by the end of 2019, indicating unstable earnings performance with no clear consistent upward or downward trajectory.
- Total Assets
- The total asset base generally shows an increasing trend from early 2015 through most of 2017, reaching a substantial peak of 198,527 million US dollars in September 2017. Following this peak, assets slightly decline, particularly toward the latter part of 2018 and 2019, where asset values return to levels seen around 2015. This pattern suggests a period of significant asset growth possibly due to acquisitions or expansions around 2017, followed by a consolidation or divestiture phase.
- Return on Assets (ROA)
- ROA data is available for select quarters starting from late 2015. Early reported ROA values are relatively strong, remaining mostly above 9% through mid-2016. After this period, there is a distinct downward trend in ROA, which diminishes to below 1% by late 2017 and remains low thereafter, fluctuating around 1% with minimal improvement into 2019. This decline suggests that despite fluctuations in net income and changes in asset levels, asset profitability has significantly weakened over time.
In summary, the company experienced a period of asset growth and high profitability until around 2016, followed by greater earnings volatility, declining profitability as measured by ROA, and a stabilization or slight reduction in total assets. This combination of trends points to challenges in maintaining profitable utilization of assets, alongside potential strategic shifts impacting asset size and earnings stability.