Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
DuPont de Nemours Inc., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | DuPont de Nemours Inc. debt to equity ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | DuPont de Nemours Inc. debt to equity ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | DuPont de Nemours Inc. debt to capital ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | DuPont de Nemours Inc. debt to capital ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | DuPont de Nemours Inc. debt to assets ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | DuPont de Nemours Inc. debt to assets ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | DuPont de Nemours Inc. financial leverage ratio increased from 2017 to 2018 but then decreased significantly from 2018 to 2019. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | DuPont de Nemours Inc. interest coverage ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | DuPont de Nemours Inc. fixed charge coverage ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Debt to Equity
DuPont de Nemours Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings and finance lease obligations | 3,830) | 2,802) | 4,015) | 907) | 995) | |
| Long-term debt, excluding debt within one year | 13,617) | 37,662) | 30,056) | 20,456) | 16,215) | |
| Total debt | 17,447) | 40,464) | 34,071) | 21,363) | 17,210) | |
| Total DuPont stockholders’ equity | 40,987) | 94,571) | 100,330) | 25,987) | 25,374) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.43 | 0.43 | 0.34 | 0.82 | 0.68 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Linde plc | 0.28 | — | — | — | — | |
| Sherwin-Williams Co. | 2.11 | — | — | — | — | |
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).
1 2019 Calculation
Debt to equity = Total debt ÷ Total DuPont stockholders’ equity
= 17,447 ÷ 40,987 = 0.43
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | DuPont de Nemours Inc. debt to equity ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Debt to Equity (including Operating Lease Liability)
DuPont de Nemours Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings and finance lease obligations | 3,830) | 2,802) | 4,015) | 907) | 995) | |
| Long-term debt, excluding debt within one year | 13,617) | 37,662) | 30,056) | 20,456) | 16,215) | |
| Total debt | 17,447) | 40,464) | 34,071) | 21,363) | 17,210) | |
| Current operating lease liabilities (included in Accrued and other current liabilities) | 138) | —) | —) | —) | —) | |
| Noncurrent operating lease liabilities (included in Other noncurrent obligations) | 416) | —) | —) | —) | —) | |
| Total debt (including operating lease liability) | 18,001) | 40,464) | 34,071) | 21,363) | 17,210) | |
| Total DuPont stockholders’ equity | 40,987) | 94,571) | 100,330) | 25,987) | 25,374) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.44 | 0.43 | 0.34 | 0.82 | 0.68 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Linde plc | 0.30 | — | — | — | — | |
| Sherwin-Williams Co. | 2.53 | — | — | — | — | |
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).
1 2019 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total DuPont stockholders’ equity
= 18,001 ÷ 40,987 = 0.44
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | DuPont de Nemours Inc. debt to equity ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019. |
Debt to Capital
DuPont de Nemours Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings and finance lease obligations | 3,830) | 2,802) | 4,015) | 907) | 995) | |
| Long-term debt, excluding debt within one year | 13,617) | 37,662) | 30,056) | 20,456) | 16,215) | |
| Total debt | 17,447) | 40,464) | 34,071) | 21,363) | 17,210) | |
| Total DuPont stockholders’ equity | 40,987) | 94,571) | 100,330) | 25,987) | 25,374) | |
| Total capital | 58,434) | 135,035) | 134,401) | 47,350) | 42,584) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.30 | 0.30 | 0.25 | 0.45 | 0.40 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Linde plc | 0.22 | — | — | — | — | |
| Sherwin-Williams Co. | 0.68 | — | — | — | — | |
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).
1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 17,447 ÷ 58,434 = 0.30
2 Click competitor name to see calculations.
| Solvency 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. debt to capital ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Debt to Capital (including Operating Lease Liability)
DuPont de Nemours Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings and finance lease obligations | 3,830) | 2,802) | 4,015) | 907) | 995) | |
| Long-term debt, excluding debt within one year | 13,617) | 37,662) | 30,056) | 20,456) | 16,215) | |
| Total debt | 17,447) | 40,464) | 34,071) | 21,363) | 17,210) | |
| Current operating lease liabilities (included in Accrued and other current liabilities) | 138) | —) | —) | —) | —) | |
| Noncurrent operating lease liabilities (included in Other noncurrent obligations) | 416) | —) | —) | —) | —) | |
| Total debt (including operating lease liability) | 18,001) | 40,464) | 34,071) | 21,363) | 17,210) | |
| Total DuPont stockholders’ equity | 40,987) | 94,571) | 100,330) | 25,987) | 25,374) | |
| Total capital (including operating lease liability) | 58,988) | 135,035) | 134,401) | 47,350) | 42,584) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.31 | 0.30 | 0.25 | 0.45 | 0.40 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Linde plc | 0.23 | — | — | — | — | |
| Sherwin-Williams Co. | 0.72 | — | — | — | — | |
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).
1 2019 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 18,001 ÷ 58,988 = 0.31
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | DuPont de Nemours Inc. debt to capital ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019. |
Debt to Assets
DuPont de Nemours Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings and finance lease obligations | 3,830) | 2,802) | 4,015) | 907) | 995) | |
| Long-term debt, excluding debt within one year | 13,617) | 37,662) | 30,056) | 20,456) | 16,215) | |
| Total debt | 17,447) | 40,464) | 34,071) | 21,363) | 17,210) | |
| Total assets | 69,396) | 188,030) | 192,164) | 79,511) | 68,026) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.25 | 0.22 | 0.18 | 0.27 | 0.25 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Linde plc | 0.16 | — | — | — | — | |
| Sherwin-Williams Co. | 0.42 | — | — | — | — | |
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).
1 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= 17,447 ÷ 69,396 = 0.25
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | DuPont de Nemours Inc. debt to assets ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Debt to Assets (including Operating Lease Liability)
DuPont de Nemours Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings and finance lease obligations | 3,830) | 2,802) | 4,015) | 907) | 995) | |
| Long-term debt, excluding debt within one year | 13,617) | 37,662) | 30,056) | 20,456) | 16,215) | |
| Total debt | 17,447) | 40,464) | 34,071) | 21,363) | 17,210) | |
| Current operating lease liabilities (included in Accrued and other current liabilities) | 138) | —) | —) | —) | —) | |
| Noncurrent operating lease liabilities (included in Other noncurrent obligations) | 416) | —) | —) | —) | —) | |
| Total debt (including operating lease liability) | 18,001) | 40,464) | 34,071) | 21,363) | 17,210) | |
| Total assets | 69,396) | 188,030) | 192,164) | 79,511) | 68,026) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.26 | 0.22 | 0.18 | 0.27 | 0.25 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Linde plc | 0.17 | — | — | — | — | |
| Sherwin-Williams Co. | 0.51 | — | — | — | — | |
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).
1 2019 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 18,001 ÷ 69,396 = 0.26
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | DuPont de Nemours Inc. debt to assets ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019. |
Financial Leverage
DuPont de Nemours Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| 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 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Linde plc | 1.76 | — | — | — | — | |
| Sherwin-Williams Co. | 4.97 | — | — | — | — | |
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).
1 2019 Calculation
Financial leverage = Total assets ÷ Total DuPont stockholders’ equity
= 69,396 ÷ 40,987 = 1.69
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | DuPont de Nemours Inc. financial leverage ratio increased from 2017 to 2018 but then decreased significantly from 2018 to 2019. |
Interest Coverage
DuPont de Nemours Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to DuPont | 498) | 3,844) | 1,460) | 4,318) | 7,685) | |
| Add: Net income attributable to noncontrolling interest | 102) | 155) | 132) | 86) | 98) | |
| Less: Income (loss) from discontinued operations, net of tax | 1,214) | (5) | (77) | —) | —) | |
| Add: Income tax expense | 140) | 1,489) | (476) | 9) | 2,147) | |
| Add: Interest expense | 668) | 1,504) | 1,082) | 858) | 946) | |
| Earnings before interest and tax (EBIT) | 194) | 6,997) | 2,275) | 5,271) | 10,876) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 0.29 | 4.65 | 2.10 | 6.14 | 11.50 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Linde plc | 21.27 | — | — | — | — | |
| Sherwin-Williams Co. | 6.67 | — | — | — | — | |
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).
1 2019 Calculation
Interest coverage = EBIT ÷ Interest expense
= 194 ÷ 668 = 0.29
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | DuPont de Nemours Inc. interest coverage ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Fixed Charge Coverage
DuPont de Nemours Inc., fixed charge coverage calculation, comparison to benchmarks
| 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% | |
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to DuPont | 498) | 3,844) | 1,460) | 4,318) | 7,685) | |
| Add: Net income attributable to noncontrolling interest | 102) | 155) | 132) | 86) | 98) | |
| Less: Income (loss) from discontinued operations, net of tax | 1,214) | (5) | (77) | —) | —) | |
| Add: Income tax expense | 140) | 1,489) | (476) | 9) | 2,147) | |
| Add: Interest expense | 668) | 1,504) | 1,082) | 858) | 946) | |
| Earnings before interest and tax (EBIT) | 194) | 6,997) | 2,275) | 5,271) | 10,876) | |
| Add: Operating lease cost | 182) | 1,042) | 862) | 661) | 600) | |
| Earnings before fixed charges and tax | 376) | 8,039) | 3,137) | 5,932) | 11,476) | |
| Interest expense | 668) | 1,504) | 1,082) | 858) | 946) | |
| Operating lease cost | 182) | 1,042) | 862) | 661) | 600) | |
| Preferred stock dividends | —) | —) | —) | 340) | 340) | |
| Preferred stock dividends, tax adjustment1 | —) | —) | —) | 183) | 183) | |
| Preferred stock dividends, after tax adjustment | —) | —) | —) | 523) | 523) | |
| Fixed charges | 850) | 2,546) | 1,944) | 2,042) | 2,069) | |
| Solvency Ratio | ||||||
| Fixed charge coverage2 | 0.44 | 3.16 | 1.61 | 2.90 | 5.55 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors3 | ||||||
| Linde plc | 6.92 | — | — | — | — | |
| Sherwin-Williams Co. | 3.47 | — | — | — | — | |
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).
1 2019 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 2019 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 376 ÷ 850 = 0.44
3 Click competitor name to see calculations.
| Solvency 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. fixed charge coverage ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |