Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Balance Sheet: Assets
- Analysis of Geographic Areas
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Analysis of Revenues
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Long-term Activity Ratios (Summary)
DuPont de Nemours Inc., long-term (investment) activity ratios
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibits a declining trend from 2.73 in 2015 to 1.72 in 2017, followed by a recovery to 2.4 in 2018 before slightly decreasing to 2.12 in 2019. This pattern indicates an initial reduction in efficiency in utilizing fixed assets to generate sales, with a notable recovery in 2018, though not fully sustaining the peak level throughout the period.
- Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset
- This metric closely mirrors the standard net fixed asset turnover ratio, with identical values from 2015 to 2017 and a minor deviation in 2019 where it falls slightly below the standard measure (2.01 vs. 2.12). This suggests that recognizing operating lease assets does not materially alter the efficiency assessment of fixed asset utilization over the observed intervals.
- Total Asset Turnover
- The total asset turnover ratio shows a consistent downward trajectory over the five-year period, declining from 0.72 in 2015 to a low of 0.31 in 2019. This pronounced decrease suggests a weakening in asset efficiency, indicating that the company generated less revenue per unit of total assets year over year.
- Equity Turnover
- Equity turnover starts relatively high at 1.92 in 2015, experiences a slight reduction in 2016 to 1.85, then sharply declines in 2017 to 0.62. Modest improvements occur in 2018 (0.91), followed by another decrease to 0.52 in 2019. This volatility and overall downward trend reflect diminishing effectiveness in generating sales from shareholders' equity during the period.
Net Fixed Asset Turnover
DuPont de Nemours Inc., net fixed asset turnover 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 sales | ||||||
| Property, plant and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Linde plc | ||||||
| Sherwin-Williams Co. | ||||||
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
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- The net sales exhibited a notable fluctuation over the analyzed periods. Initially, the value slightly decreased from 48,778 million US dollars at the end of 2015 to 48,158 million in 2016. Subsequently, there was a significant increase, reaching 62,484 million in 2017, and further climbing to 85,977 million in 2018. However, in 2019, net sales sharply declined to 21,512 million, indicating a substantial drop compared to the previous year.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment displayed a consistent upward trend from 17,854 million in 2015 to 36,247 million in 2017, before slightly declining to 35,848 million in 2018. In 2019, this figure decreased significantly to 10,143 million US dollars, mirroring the substantial decline observed in net sales for the same year.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio declined from 2.73 in 2015 to 1.72 in 2017, indicating reduced efficiency in generating sales from fixed assets during this period. The ratio improved to 2.4 in 2018, suggesting better asset utilization. In 2019, despite lower sales and asset values, the turnover ratio dropped to 2.12, which still reflects moderate efficiency compared to earlier years.
- Overall Insights
- The data shows overall growth in sales and asset base between 2015 and 2018, with efficiency in asset utilization declining initially but improving in 2018. The year 2019, however, stands out due to a significant decrease in both net sales and net fixed assets, likely pointing to either divestiture, restructuring, or other extraordinary events affecting the company's operations and asset base during this final period.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
DuPont de Nemours Inc., net fixed asset turnover (including operating lease, right-of-use asset) 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 sales | ||||||
| Property, plant and equipment, net | ||||||
| Operating lease right-of-use assets (included in Deferred charges and other assets) | ||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Linde plc | ||||||
| Sherwin-Williams Co. | ||||||
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited an overall fluctuating trend over the observed period. Beginning at approximately $48.8 billion in 2015, sales experienced a slight decline in 2016, decreasing to about $48.2 billion. Subsequently, there was a significant increase in 2017, with net sales rising to approximately $62.5 billion. This upward trajectory continued sharply into 2018, reaching nearly $86.0 billion. However, in 2019, net sales sharply declined to approximately $21.5 billion, indicating a substantial contraction in revenue during this final year.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment, including operating lease and right-of-use assets, showed a general increase from 2015 to 2018. Starting at about $17.9 billion in 2015, this asset base expanded significantly to around $23.5 billion in 2016 and further increased to roughly $36.2 billion in 2017. In 2018, the net value slightly decreased but remained high at approximately $35.8 billion. Similar to net sales, there was a marked drop in 2019, with the asset base declining sharply to about $10.7 billion.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio, which measures efficiency in using fixed assets to generate sales, displayed notable variation. Starting from a relatively strong ratio of 2.73 in 2015, it declined to 2.05 in 2016 and further decreased to 1.72 in 2017, indicating reduced asset utilization efficiency. In 2018, the ratio improved to 2.40, reflecting better asset productivity. However, in 2019, the ratio once again declined to 2.01, suggesting a slight reduction in how effectively assets were used to generate sales, coinciding with decreased net sales and asset values.
Total Asset Turnover
DuPont de Nemours Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Linde plc | ||||||
| Sherwin-Williams Co. | ||||||
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
Total asset turnover = Net sales ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales showed a relatively stable trend between 2015 and 2016, with a slight decline from 48,778 million US dollars to 48,158 million US dollars. There was a significant increase in 2017, rising to 62,484 million US dollars, followed by a continued notable increase in 2018 to 85,977 million US dollars. However, in 2019, net sales declined sharply to 21,512 million US dollars.
- Total Assets
- Total assets exhibited a substantial increase from 68,026 million US dollars in 2015 to 79,511 million US dollars in 2016. This was followed by a very large jump to 192,164 million US dollars in 2017. In 2018, total assets slightly decreased to 188,030 million US dollars. A significant decrease occurred in 2019, bringing total assets down dramatically to 69,396 million US dollars.
- Total Asset Turnover
- The total asset turnover ratio, which measures the efficiency of asset use in generating sales, declined steadily over the period. It started at 0.72 in 2015, then decreased to 0.61 in 2016. The ratio experienced a sharp drop to 0.33 in 2017, followed by a slight recovery to 0.46 in 2018. In 2019, it decreased again to 0.31, the lowest recorded ratio in the observed years.
Overall, the data indicates a period of rapid expansion in both net sales and total assets from 2016 to 2018, accompanied by a decline in asset efficiency as expressed by the total asset turnover ratio. The sharp declines in both net sales and total assets in 2019 suggest a major structural or operational change occurring in that year, which is also reflected by the persistently low asset turnover, indicating reduced efficiency in utilizing assets to generate sales during that period.
Equity Turnover
DuPont de Nemours Inc., equity turnover 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 sales | ||||||
| Total DuPont stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Linde plc | ||||||
| Sherwin-Williams Co. | ||||||
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
Equity turnover = Net sales ÷ Total DuPont stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends for the periods under review. Net sales initially show a modest decline from $48,778 million in 2015 to $48,158 million in 2016. Subsequently, there is a substantial increase reaching a peak of $85,977 million in 2018, followed by a sharp decline to $21,512 million in 2019. This sharp drop in 2019 represents a significant deviation from the previous upward trend over the prior three years.
Total DuPont stockholders’ equity demonstrates steady growth from $25,374 million in 2015 to a large leap in 2017, reaching $100,330 million. This elevated equity level remains relatively stable in 2018 at $94,571 million but then decreases markedly to $40,987 million in 2019. The increase between 2015 and 2017 is particularly prominent, suggesting significant capital accumulation or valuation changes, while the decline in 2019 points to a substantial withdrawal or reduction in equity.
Equity turnover, which measures the efficiency of equity in generating net sales, declines overall during the period. Starting at 1.92 in 2015, it gradually decreases to 1.85 in 2016, then drops more sharply to 0.62 in 2017. After a slight recovery to 0.91 in 2018, it falls again to the lowest recorded ratio of 0.52 in 2019. This trend indicates decreasing asset utilization efficiency relative to equity, especially notable in the latest year.
Overall, the period is characterized by a sharp increase followed by considerable declines in both net sales and stockholders’ equity by 2019. The equity turnover’s downward trend reflects less efficient use of equity to generate sales. These patterns may indicate structural changes, significant transactions, or external factors impacting operational performance and capital structure.
- Net Sales
- Initial stability, then strong growth until 2018, followed by a steep decline in 2019.
- Total Stockholders’ Equity
- Steady increase until a peak in 2017, stability in 2018, and a sharp drop in 2019.
- Equity Turnover
- Overall decline, indicating decreasing efficiency in using equity to generate sales.