DuPont de Nemours Inc. (NYSE:DD)

The financial data indicates notable volatility in both reported and adjusted net income attributable to the company over the five-year period from 2015 to 2019.

Reported Net Income Attributable to DuPont

The reported net income shows a significant decline from 7,685 million US dollars at the end of 2015 to 4,318 million in 2016, representing a decrease of approximately 44%. This downward trend continues more sharply into 2017, where net income falls to 1,460 million. In 2018, there is a recovery trend, with net income increasing to 3,844 million, but this is followed by another steep decline to 498 million in 2019, reaching the lowest point within the observed period.

Adjusted Net Income Attributable to DuPont

The adjusted net income closely follows the reported net income trends, starting at 7,591 million in 2015 and decreasing to 4,314 million in 2016. Further reduction is seen in 2017, with adjusted income dropping to 1,414 million. Similar to reported figures, adjusted income rises in 2018 to 3,777 million before declining again in 2019 to 565 million. The alignment between reported and adjusted figures suggests consistency in adjustments made, with minor deviations.

Overall, both reported and adjusted net income figures reflect considerable fluctuations over the five years, with a general downward trajectory from 2015 to 2017, a partial recovery in 2018, and a substantial decrease in 2019. The data implies periods of financial challenges, potentially linked to operational or external factors impacting profitability.

The financial data reveals a clear downward trend in profitability and returns for the period from 2015 to 2019. Both reported and adjusted net profit margins show a significant decline, decreasing from approximately 15.7% in 2015 to about 2.3% by 2019. This indicates a substantial reduction in the company's ability to convert revenues into net income over the examined timeframe.

Similarly, return on equity (ROE) measures, both reported and adjusted, decline steeply from over 30% in 2015 to around 1-1.4% in 2019. This suggests diminishing efficiency in generating profit from shareholders' equity, reflecting a potential weakening in financial performance or operational challenges.

Return on assets (ROA) follows the same downward pattern, falling from roughly 11.3% in 2015 to less than 1% by 2019. This trend implies that the company has become less effective at using its asset base to generate earnings.

Throughout the period, the differences between reported and adjusted figures for net profit margin, ROE, and ROA remain minor. This similarity suggests that the adjustments made to the financial data do not significantly alter the overall picture of declining profitability and returns.

Overall trend

Steady decline across key profitability and performance metrics from 2015 to 2019.

Net profit margin

Decreased from high teens in 2015 to just above 2% in 2019, indicating eroded profit margins.

Return on equity (ROE)

Dropped dramatically from over 30% to near 1%, reflecting reduced shareholder value generation.

Return on assets (ROA)

Fell from around 11% to below 1%, showing declining asset utilization efficiency.

Comparison of reported and adjusted data

Minimal variances indicating that adjustments marginally impact the overall analysis.

The financial data of DuPont de Nemours Inc. over the period from December 31, 2015 to December 31, 2019 exhibits notable fluctuations in both net income and net profit margins, whether reported or adjusted.

Net Income Trends

The reported net income attributable to the company started at a high level of $7,685 million in 2015. It then experienced a sharp decline to $4,318 million in 2016, followed by an even more pronounced drop to $1,460 million in 2017. Thereafter, the net income partially recovered, reaching $3,844 million in 2018, before declining significantly to $498 million in 2019.

The adjusted net income figures follow a similar pattern, beginning at $7,591 million in 2015 and declining progressively to $565 million by 2019, with intermediate lows and partial recovery mirrored closely to the reported numbers. The consistency between reported and adjusted net income suggests that the adjustments made were not substantial enough to alter the overall trend significantly.

Net Profit Margin Trends

The reported net profit margin aligned with the net income trend, starting at 15.76% in 2015 and decreasing sharply to 8.97% in 2016. It then declined further to 2.34% in 2017. Following this, there was a moderate improvement to 4.47% in 2018, but the margin fell again to 2.31% by 2019.

The adjusted net profit margin closely mirrors the reported margin, starting at 15.56% in 2015 and decreasing to a low of 2.26% in 2017. Subsequent years showed a slight increase to 4.39% in 2018 and a minor decline to 2.63% in 2019. This parallel movement between adjusted and reported margins indicates a stable relationship between the adjustments and the reported financial performance.

Overall, the company experienced a marked decline in profitability and net income over the five-year period, with some recovery in 2018 before further declines in 2019. The parallel trends in reported and adjusted figures reinforce the reliability of these observations. This pattern may indicate operational or market challenges faced by the company during this timeframe, warranting further investigation into the underlying causes of such volatility and the significant drop by 2019.

The financial data over the five-year period reveals distinct downward trends and fluctuations in profitability and return metrics for the company.

Net Income Trends

Reported net income attributable to the company significantly declined from 7,685 million US dollars in 2015 to 498 million US dollars in 2019. The decline appears steep and irregular, with a notable drop from 4,318 million in 2016 to 1,460 million in 2017. A partial recovery occurs in 2018, reaching 3,844 million, before falling sharply again in 2019.

Adjusted net income shows a very similar pattern and magnitude to the reported figures over the period, indicating that adjustments made for investment purposes did not substantially affect the net income figures. Adjusted net income starts at 7,591 million US dollars in 2015 and falls to 565 million US dollars in 2019, mirroring the volatility and overall decline observed in reported net income.

Return on Equity (ROE) Analysis

Both reported and adjusted ROE follow a consistent downward trajectory during the period. Reported ROE drops from a high of 30.29% in 2015 to a low of 1.22% in 2019, with the most significant year-over-year decline occurring between 2016 and 2017. Adjusted ROE demonstrates an almost identical path, descending from 29.92% in 2015 to 1.38% in 2019.

The relatively close figures between reported and adjusted ROE suggest that investment-related adjustments had minimal impact on the company’s return on equity across these years.

Overall Insights

The data indicates that the company experienced considerable challenges in maintaining profitability and generating returns for equity holders during this five-year span. Despite some recovery observed in 2018, the overall trend points to declining financial performance. The close alignment between reported and adjusted figures suggests that reported results are representative of the underlying economic performance, without significant distortions due to adjustments.

The marked decrease in net income and ROE metrics may reflect operational difficulties, market pressures, or strategic transitions impacting earnings quality and shareholder returns.

Net Income Trends

The reported net income attributable to the company exhibited a significant downward trend over the five-year period. Starting at a high of 7,685 million US dollars in 2015, it declined sharply to 4,318 million in 2016, then further dropped to 1,460 million in 2017. A partial recovery occurred in 2018 with net income rising to 3,844 million, followed by a pronounced decrease again in 2019 to 498 million. The adjusted net income followed a similar trajectory, indicating consistency in adjustments applied across the years and confirming the downward earnings trend.

Return on Assets (ROA) Analysis

The reported Return on Assets showed a marked decrease from 11.3% in 2015 to a low of 0.72% in 2019. This significant decline indicates the company's diminishing efficiency in generating profits from its asset base. The adjusted ROA closely mirrored this pattern, starting at 11.16% in 2015 and dropping to 0.81% in 2019. The close alignment between reported and adjusted ROA suggests that asset profitability was consistently affected by similar factors considered in the net income adjustments.

Overall Insights

The data reflects a period of considerable financial challenges, characterized by decreasing profitability and asset utilization. The sharp decline in both net income and ROA over the years points to potentially adverse operational or market conditions impacting performance. The modest rebound in 2018 net income, followed by another decline in 2019, suggests that improvements were temporary or insufficient to sustain long-term profitability growth.