Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Paying user area
Try for free
DuPont de Nemours Inc. pages available for free this week:
- 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
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to DuPont de Nemours Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Profitability Ratios (Summary)
DuPont de Nemours Inc., profitability 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).
- Gross Profit Margin
- The gross profit margin exhibited a fluctuating yet overall increasing trend over the five-year period. It began at 22.43% in 2015 and experienced a slight decline in 2016 and 2017, reaching a low of 19.32% in 2017. From 2018 onwards, a strong upward trajectory was observed, culminating in a significant increase to 34.66% by the end of 2019.
- Operating Profit Margin
- The operating profit margin demonstrated considerable volatility and an overall declining tendency throughout the period. Starting at 11.36% in 2015, it dropped sharply to 7.31% in 2016 and further plummeted to a minimal 0.87% in 2017. Although there was a moderate recovery to 6.29% in 2018, the margin declined again, falling into negative territory at -0.2% by 2019, indicating operating losses in the final year.
- Net Profit Margin
- The net profit margin trended downward over the observed timeframe, reflecting diminishing profitability. Beginning at 15.76% in 2015, it decreased substantially in 2016 to 8.97%, followed by a sharp drop to 2.34% in 2017. Slight improvement occurred in 2018, with the margin rising to 4.47%, but profitability weakened once more in 2019, falling to 2.31%.
- Return on Equity (ROE)
- Return on equity showed a pronounced decline over the five years, indicating a reduction in efficiency at generating returns from shareholders' equity. The metric dropped markedly from a robust 30.29% in 2015 to 16.62% in 2016. Subsequent years saw a steep decrease, with ROE at 1.46% in 2017, a modest rise to 4.06% in 2018, followed by a further decrease to 1.22% in 2019.
- Return on Assets (ROA)
- Return on assets followed a pattern similar to ROE, showing a significant decrease in profitability from asset use. Starting at 11.3% in 2015, it dropped to 5.43% in 2016 and continued declining to 0.76% in 2017. A slight recovery took place in 2018, reaching 2.04%, but the figure fell again to 0.72% in 2019, indicating reduced asset efficiency.
Return on Sales
Return on Investment
Gross Profit Margin
DuPont de Nemours Inc., gross profit margin 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) | ||||||
| Gross margin | ||||||
| Net sales | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, 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
Gross profit margin = 100 × Gross margin ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
- Gross Margin
- The gross margin experienced fluctuations throughout the analyzed period. It decreased slightly from 10,942 million US dollars in 2015 to 10,517 million US dollars in 2016, followed by an increase to 12,070 million US dollars in 2017. A significant peak occurred in 2018 with a margin of 20,644 million US dollars. However, 2019 saw a sharp decline to 7,456 million US dollars.
- Net Sales
- Net sales displayed a generally upward trend from 2015 to 2018, rising from 48,778 million US dollars to a peak of 85,977 million US dollars in 2018. In 2019, there was a pronounced decrease to 21,512 million US dollars, indicating a considerable contraction in revenue for that year.
- Gross Profit Margin
- The gross profit margin percentage showed variability over the years. It slightly declined from 22.43% in 2015 to 21.84% in 2016, then experienced a more noticeable drop to 19.32% in 2017. This was followed by a substantial improvement to 24.01% in 2018 and a further increase to 34.66% in 2019, suggesting enhanced efficiency or a shift in product mix despite the decline in sales and gross margin value in 2019.
- Overall Analysis
- Despite strong growth in net sales and gross margin up to 2018, indicating an expanding business and improving gross profitability, 2019 marked a significant downturn in both figures. The steep reduction in net sales and gross margin in 2019 contrasts with an improved gross profit margin percentage, which may reflect cost control measures, pricing adjustments, or changes in business strategy. These mixed signals suggest the company faced challenges affecting sales volume or segment composition but managed to enhance profitability on remaining sales.
Operating Profit Margin
DuPont de Nemours Inc., operating profit margin 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) | ||||||
| Operating income (loss) | ||||||
| Net sales | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, 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
Operating profit margin = 100 × Operating income (loss) ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
The financial data over the five-year period reveals significant fluctuations in operating income, net sales, and operating profit margin.
- Operating Income (Loss)
- Operating income demonstrates considerable volatility. Initially, it was robust at 5,539 million US dollars in 2015 but sharply declined to 3,520 million in 2016. This was followed by a substantial decrease to 545 million in 2017, indicating a significant contraction in profitability. In 2018, operating income rebounded strongly to 5,404 million but fell dramatically to a negative value of -43 million in 2019, suggesting the company experienced an operating loss in the final year of the period analyzed.
- Net Sales
- Net sales show a more variable trend with an unusual pattern. The value slightly decreased from 48,778 million US dollars in 2015 to 48,158 million in 2016. However, there was a notable increase in 2017 to 62,484 million, followed by a further sharp rise to 85,977 million in 2018. In 2019, net sales dropped steeply to 21,512 million, indicating a significant reduction in revenue generation after strong growth periods.
- Operating Profit Margin
- The operating profit margin aligns with the trends observed in operating income, reflecting profitability relative to net sales. It declined from 11.36% in 2015 to 7.31% in 2016, and further plummeted to 0.87% in 2017, indicating diminishing operational efficiency. The margin recovered to 6.29% in 2018 but turned slightly negative (-0.2%) in 2019, consistent with the operating loss reported that year.
Overall, the data indicates that while the company experienced periods of strong sales growth and high operating income between 2015 and 2018, these gains were not consistently maintained. The marked declines in 2019 across all key financial metrics suggest significant challenges affecting profitability and sales performance in the most recent year analyzed.
Net Profit Margin
DuPont de Nemours Inc., net profit margin 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 | ||||||
| Net sales | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, 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 profit margin = 100 × Net income attributable to DuPont ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
The financial data presents key performance indicators over a five-year period, highlighting notable fluctuations and trends.
- Net Income Attributable
- Net income declined significantly from 7,685 million USD in 2015 to 498 million USD in 2019. The year 2016 saw a roughly 44% decrease compared to 2015, followed by a sharper decline in 2017 to 1,460 million USD. There was a recovery in 2018 to 3,844 million USD, but the figure dropped again in 2019.
- Net Sales
- Net sales showed an upward trend from 48,778 million USD in 2015 to a peak of 85,977 million USD in 2018, representing significant growth. However, in 2019, net sales declined sharply to 21,512 million USD, indicating a major contraction in revenue.
- Net Profit Margin
- The net profit margin decreased from 15.76% in 2015 to 2.31% in 2019, reflecting diminishing profitability. There was a marked drop in margin in 2016, continuing downward through 2017 before a slight recovery in 2018. The margin dropped again in 2019, coinciding with the decline in net income and sales.
Overall, the data indicates volatility characterized by initial decreases in profitability and net income, followed by a brief improvement before deteriorating again in the final observed year. Despite growth in net sales until 2018, profitability metrics worsened, suggesting increased costs or other challenges impacting earnings. The steep decreases observed in 2019 warrant further investigation into underlying factors affecting financial performance.
Return on Equity (ROE)
DuPont de Nemours Inc., ROE 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 | ||||||
| Total DuPont stockholders’ equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, 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
ROE = 100 × Net income attributable to DuPont ÷ Total DuPont stockholders’ equity
= 100 × ÷ =
2 Click competitor name to see calculations.
The financial data reveals notable fluctuations in key performance indicators over the five-year period. Net income attributable to the company exhibited a significant decline from 2015 to 2019, beginning at a high of 7,685 million US dollars in 2015 and dropping sharply to 498 million US dollars by 2019. A notable trough was observed in 2017 with net income falling to 1,460 million US dollars, followed by a modest recovery in 2018 to 3,844 million US dollars before declining again in 2019.
Total stockholders’ equity displayed considerable volatility during the same timeframe. Starting at 25,374 million US dollars in 2015, equity slightly increased to 25,987 million US dollars in 2016. However, there was a dramatic surge in 2017 to 100,330 million US dollars, which might indicate a major capital event or revaluation within the company. Afterward, total equity declined to 94,571 million US dollars in 2018 and more sharply to 40,987 million US dollars in 2019, indicating substantial reductions or adjustments during these years.
Return on equity (ROE) mirrored the net income trends, signaling a diminishing efficiency in generating profit from shareholders’ equity. The ROE decreased from a robust 30.29% in 2015 to 1.22% in 2019, with a notably low point of 1.46% in 2017. The minimal recovery to 4.06% in 2018 was insufficient to offset the overall declining trend, underscoring a weakened profitability position relative to the equity base.
In summary, these metrics collectively suggest a period of financial turbulence characterized by decreasing profitability, significant swings in equity levels, and a marked reduction in return on equity. These patterns point to potential challenges in maintaining stable profitability and managing equity resources effectively over the analyzed years.
- Net Income Attributable to the Company
- Substantial decline from 7.7 billion USD in 2015 to under 0.5 billion USD in 2019, with interim fluctuations.
- Total Stockholders’ Equity
- Marked volatility including a peak at over 100 billion USD in 2017 followed by substantial decreases.
- Return on Equity (ROE)
- Continuous decrease from above 30% in 2015 to near 1% in 2019, indicating reduced profitability efficiency.
Return on Assets (ROA)
DuPont de Nemours Inc., ROA 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 | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, 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
ROA = 100 × Net income attributable to DuPont ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
The analysis of the provided financial data reveals several notable trends regarding profitability and asset management over the five-year period ending December 2019.
- Net Income Attributable to DuPont
- The net income figures show a significant decline from 2015 through 2017, dropping from 7,685 million US dollars to 1,460 million US dollars. This is followed by a partial recovery in 2018, where net income increases to 3,844 million US dollars, before falling sharply again in 2019 to 498 million US dollars. This pattern indicates volatility in profitability, with substantial fluctuations and an overall downward trend over the period reviewed.
- Total Assets
- Total assets increased markedly from 68,026 million US dollars in 2015 to a peak of 192,164 million US dollars in 2017. After a slight decrease in 2018 to 188,030 million US dollars, the total assets substantially decreased in 2019 to 69,396 million US dollars. This trajectory suggests significant asset accumulation up to 2017, followed by a rapid contraction by the end of 2019.
- Return on Assets (ROA)
- The ROA percentage exhibits a declining trend across the period, beginning at a relatively strong 11.3% in 2015 and falling sharply to 0.76% in 2017. There is a modest improvement in 2018 to 2.04%, but the metric drops again in 2019 to 0.72%. This decline in ROA, coupled with fluctuations in net income and assets, reflects diminishing efficiency in generating profit from the company’s asset base.
Overall, the data indicates that the company experienced considerable operational challenges impacting profitability and asset utilization, particularly after 2015. The sharp increases and decreases in total assets alongside declining net income and ROA suggest a period of restructuring or significant asset disposals, which adversely affected financial performance and efficiency.