Stock Analysis on Net
Stock Analysis on Net

DuPont de Nemours Inc. (NYSE:DD)

This company has been moved to the archive! The financial data has not been updated since February 14, 2020.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

DuPont de Nemours Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Federal 22 (60) (98) 91 583
State and local 5 13 22 21 38
Foreign 591 1,970 1,766 1,156 1,221
Current tax expense 618 1,923 1,690 1,268 1,842
Federal (598) (160) (1,764) (1,255) 358
State and local 172 (36) 8 (10) (8)
Foreign (52) (238) (410) 6 (45)
Deferred tax expense (benefit) (478) (434) (2,166) (1,259) 305
Provision for (benefit from) income taxes on continuing operations 140 1,489 (476) 9 2,147

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Item Description The company
Current tax expense Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. DuPont de Nemours Inc. current tax expense increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.
Deferred tax expense (benefit) Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. DuPont de Nemours Inc. deferred tax expense (benefit) increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.
Provision for (benefit from) income taxes on continuing operations Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. DuPont de Nemours Inc. provision for (benefit from) income taxes on continuing operations increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.

Effective Income Tax Rate (EITR)

DuPont de Nemours Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Statutory U.S. federal income tax rate 21.00% 21.00% 35.00% 35.00% 35.00%
Equity earnings effect 1.30% -2.50% -11.00% -1.20% -1.80%
Foreign income taxed at rates other than the statutory U.S. federal income tax rate 3.40% 6.10% -26.70% -7.00% -4.00%
U.S. tax effect of foreign earnings and dividends -4.30% -0.20% -2.50% -4.60% 1.30%
Unrecognized tax benefits -10.00% 0.00% 2.90% -0.80% 0.80%
Acquisitions, divestitures and ownership restructuring activities 30.30% 1.70% 6.50% -21.20% -9.50%
Exchange gains/losses -4.40% 0.50% 2.40% 0.00% 0.00%
State and local income taxes -33.20% 0.00% 6.10% 0.20% 0.60%
Change in valuation allowance -6.80% 0.00% 0.00% 0.00% 0.00%
Goodwill impairment -51.20% 0.00% 44.90% 0.00% 0.00%
Excess tax benefits from stock-based compensation 0.10% -1.00% -8.50% 0.00% 0.00%
Other, net 13.50% 1.60% 1.90% -0.20% -0.80%
Effective tax rate, before SAB 118 Impact of Enactment of U.S. Tax Reform -40.30% 27.20% 51.00% 0.20% 21.60%
Impact of Enactment of U.S. Tax Reform 10.80% -0.10% -90.90% 0.00% 0.00%
Effective tax rate -29.50% 27.10% -39.90% 0.20% 21.60%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Item Description The company
Effective tax rate, before SAB 118 Impact of Enactment of U.S. Tax Reform Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. DuPont de Nemours Inc. effective tax rate, before SAB 118 Impact of Enactment of U.S. Tax Reform decreased from 2017 to 2018 and from 2018 to 2019.

Components of Deferred Tax Assets and Liabilities

DuPont de Nemours Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Property — 460 508 307 48
Tax loss and credit carryforwards 776 3,634 3,425 2,450 1,647
Pension and postretirement benefit obligations 245 3,845 4,227 3,715 4,199
Other accruals and reserves 65 1,639 1,661 1,964 1,191
Intangibles — 471 460 128 208
Inventory — 197 165 50 306
Long-term debt — 24 109 — —
Investments — 295 295 179 204
Other, net 169 984 806 737 1,114
Gross deferred tax assets 1,255 11,549 11,656 9,530 8,917
Valuation allowances (634) (2,407) (2,749) (1,061) (1,000)
Deferred tax assets 621 9,142 8,907 8,469 7,917
Unrealized exchange gains (losses), net (1) (141) (71) — —
Inventory (9) (534) (768) (197) (218)
Investments (341) (641) (611) (119) (242)
Property (796) (3,593) (3,634) (2,860) (2,015)
Postretirement benefit obligations — (376) (199) (75) (1,344)
Other accruals and reserves — (168) (190) (883) (684)
Intangibles (2,752) (6,818) (7,296) (1,536) (692)
Long-term debt — — — — (440)
Other, net — (582) (535) (643) (436)
Deferred tax liabilities (3,899) (12,853) (13,304) (6,313) (6,071)
Net deferred tax asset (liability) (3,278) (3,711) (4,397) 2,156 1,846

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Item Description The company
Gross deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. DuPont de Nemours Inc. gross deferred tax assets decreased from 2017 to 2018 and from 2018 to 2019.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. DuPont de Nemours Inc. deferred tax assets increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.
Net deferred tax asset (liability) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. DuPont de Nemours Inc. net deferred tax asset (liability) increased from 2017 to 2018 and from 2018 to 2019.

Deferred Tax Assets and Liabilities, Classification

DuPont de Nemours Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Current deferred tax assets — — — — 827
Noncurrent deferred tax assets 236 1,724 1,869 3,079 1,694
Current deferred tax liabilities — — — — 100
Noncurrent deferred tax liabilities 3,514 5,435 6,266 923 575

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Item Description The company
Noncurrent deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. DuPont de Nemours Inc. noncurrent deferred tax assets decreased from 2017 to 2018 and from 2018 to 2019.
Noncurrent deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. DuPont de Nemours Inc. noncurrent deferred tax liabilities decreased from 2017 to 2018 and from 2018 to 2019.

Adjustments to Financial Statements: Removal of Deferred Taxes

DuPont de Nemours Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Adjustment to Current Assets
Current assets (as reported) 9,999 49,603 49,893 23,659 24,475
Less: Current deferred tax assets, net — — — — 827
Current assets (adjusted) 9,999 49,603 49,893 23,659 23,648
Adjustment to Total Assets
Total assets (as reported) 69,396 188,030 192,164 79,511 68,026
Less: Current deferred tax assets, net — — — — 827
Less: Noncurrent deferred tax assets, net 236 1,724 1,869 3,079 1,694
Total assets (adjusted) 69,160 186,306 190,295 76,432 65,505
Adjustment to Current Liabilities
Current liabilities (as reported) 8,346 24,715 26,128 12,604 11,215
Less: Current deferred tax liabilities, net — — — — 100
Current liabilities (adjusted) 8,346 24,715 26,128 12,604 11,115
Adjustment to Total Liabilities
Total liabilities (as reported) 27,840 91,851 90,237 52,282 41,843
Less: Current deferred tax liabilities, net — — — — 100
Less: Noncurrent deferred tax liabilities, net 3,514 5,435 6,266 923 575
Total liabilities (adjusted) 24,326 86,416 83,971 51,359 41,168
Adjustment to Total DuPont Stockholders’ Equity
Total DuPont stockholders’ equity (as reported) 40,987 94,571 100,330 25,987 25,374
Less: Net deferred tax assets (liabilities) (3,278) (3,711) (4,397) 2,156 1,846
Total DuPont stockholders’ equity (adjusted) 44,265 98,282 104,727 23,831 23,528
Adjustment to Net Income Attributable To DuPont
Net income attributable to DuPont (as reported) 498 3,844 1,460 4,318 7,685
Add: Deferred income tax expense (benefit) (478) (434) (2,166) (1,259) 305
Net income attributable to DuPont (adjusted) 20 3,410 (706) 3,059 7,990

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

DuPont de Nemours Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

DuPont de Nemours Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Current Ratio
Reported current ratio 1.20 2.01 1.91 1.88 2.18
Adjusted current ratio 1.20 2.01 1.91 1.88 2.13
Net Profit Margin
Reported net profit margin 2.31% 4.47% 2.34% 8.97% 15.76%
Adjusted net profit margin 0.09% 3.97% -1.13% 6.35% 16.38%
Total Asset Turnover
Reported total asset turnover 0.31 0.46 0.33 0.61 0.72
Adjusted total asset turnover 0.31 0.46 0.33 0.63 0.74
Financial Leverage
Reported financial leverage 1.69 1.99 1.92 3.06 2.68
Adjusted financial leverage 1.56 1.90 1.82 3.21 2.78
Return on Equity (ROE)
Reported ROE 1.22% 4.06% 1.46% 16.62% 30.29%
Adjusted ROE 0.05% 3.47% -0.67% 12.84% 33.96%
Return on Assets (ROA)
Reported ROA 0.72% 2.04% 0.76% 5.43% 11.30%
Adjusted ROA 0.03% 1.83% -0.37% 4.00% 12.20%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Financial ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. DuPont de Nemours Inc. adjusted current ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. DuPont de Nemours Inc. adjusted net profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. DuPont de Nemours Inc. adjusted total asset turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 DuPont de Nemours Inc. adjusted financial leverage ratio increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. DuPont de Nemours Inc. adjusted ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. DuPont de Nemours Inc. adjusted ROA improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

DuPont de Nemours Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Current assets 9,999 49,603 49,893 23,659 24,475
Current liabilities 8,346 24,715 26,128 12,604 11,215
Liquidity Ratio
Current ratio1 1.20 2.01 1.91 1.88 2.18
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted current assets 9,999 49,603 49,893 23,659 23,648
Adjusted current liabilities 8,346 24,715 26,128 12,604 11,115
Liquidity Ratio
Adjusted current ratio2 1.20 2.01 1.91 1.88 2.13

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 9,999 ÷ 8,346 = 1.20

2 Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 9,999 ÷ 8,346 = 1.20

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. DuPont de Nemours Inc. adjusted current ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to DuPont 498 3,844 1,460 4,318 7,685
Net sales 21,512 85,977 62,484 48,158 48,778
Profitability Ratio
Net profit margin1 2.31% 4.47% 2.34% 8.97% 15.76%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to DuPont 20 3,410 (706) 3,059 7,990
Net sales 21,512 85,977 62,484 48,158 48,778
Profitability Ratio
Adjusted net profit margin2 0.09% 3.97% -1.13% 6.35% 16.38%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

1 Net profit margin = 100 × Net income attributable to DuPont ÷ Net sales
= 100 × 498 ÷ 21,512 = 2.31%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to DuPont ÷ Net sales
= 100 × 20 ÷ 21,512 = 0.09%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. DuPont de Nemours Inc. adjusted net profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net sales 21,512 85,977 62,484 48,158 48,778
Total assets 69,396 188,030 192,164 79,511 68,026
Activity Ratio
Total asset turnover1 0.31 0.46 0.33 0.61 0.72
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales 21,512 85,977 62,484 48,158 48,778
Adjusted total assets 69,160 186,306 190,295 76,432 65,505
Activity Ratio
Adjusted total asset turnover2 0.31 0.46 0.33 0.63 0.74

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 21,512 ÷ 69,396 = 0.31

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 21,512 ÷ 69,160 = 0.31

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. DuPont de Nemours Inc. adjusted total asset turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Total assets 69,396 188,030 192,164 79,511 68,026
Total DuPont stockholders’ equity 40,987 94,571 100,330 25,987 25,374
Solvency Ratio
Financial leverage1 1.69 1.99 1.92 3.06 2.68
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 69,160 186,306 190,295 76,432 65,505
Adjusted total DuPont stockholders’ equity 44,265 98,282 104,727 23,831 23,528
Solvency Ratio
Adjusted financial leverage2 1.56 1.90 1.82 3.21 2.78

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

1 Financial leverage = Total assets ÷ Total DuPont stockholders’ equity
= 69,396 ÷ 40,987 = 1.69

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total DuPont stockholders’ equity
= 69,160 ÷ 44,265 = 1.56

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 DuPont de Nemours Inc. adjusted financial leverage ratio increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to DuPont 498 3,844 1,460 4,318 7,685
Total DuPont stockholders’ equity 40,987 94,571 100,330 25,987 25,374
Profitability Ratio
ROE1 1.22% 4.06% 1.46% 16.62% 30.29%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to DuPont 20 3,410 (706) 3,059 7,990
Adjusted total DuPont stockholders’ equity 44,265 98,282 104,727 23,831 23,528
Profitability Ratio
Adjusted ROE2 0.05% 3.47% -0.67% 12.84% 33.96%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

1 ROE = 100 × Net income attributable to DuPont ÷ Total DuPont stockholders’ equity
= 100 × 498 ÷ 40,987 = 1.22%

2 Adjusted ROE = 100 × Adjusted net income attributable to DuPont ÷ Adjusted total DuPont stockholders’ equity
= 100 × 20 ÷ 44,265 = 0.05%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. DuPont de Nemours Inc. adjusted ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to DuPont 498 3,844 1,460 4,318 7,685
Total assets 69,396 188,030 192,164 79,511 68,026
Profitability Ratio
ROA1 0.72% 2.04% 0.76% 5.43% 11.30%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to DuPont 20 3,410 (706) 3,059 7,990
Adjusted total assets 69,160 186,306 190,295 76,432 65,505
Profitability Ratio
Adjusted ROA2 0.03% 1.83% -0.37% 4.00% 12.20%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

1 ROA = 100 × Net income attributable to DuPont ÷ Total assets
= 100 × 498 ÷ 69,396 = 0.72%

2 Adjusted ROA = 100 × Adjusted net income attributable to DuPont ÷ Adjusted total assets
= 100 × 20 ÷ 69,160 = 0.03%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. DuPont de Nemours Inc. adjusted ROA improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.