Dupont De Nemours Inc (DD)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	3.70	3.65	3.61	2.79	3.63
Receivables turnover	—	—	—	—	—
Payables turnover	—	—	—	—	—
Working capital turnover	7.92	2.73	1.74	3.30	3.30

Based on the provided data for Dupont De Nemours Inc, let's analyze the activity ratios as follows:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently the company is managing its inventory. A higher ratio indicates that inventory is selling more quickly. Dupont De Nemours Inc's inventory turnover has fluctuated over the years, ranging from 2.79 to 3.70. The company's inventory turnover has generally shown consistency, with slightly higher values in recent years, suggesting efficient inventory management.

2. Receivables Turnover:
- Unfortunately, there is no data provided for the receivables turnover ratio, which calculates how efficiently the company is collecting on its credit sales. Without this data, it is challenging to assess Dupont De Nemours Inc's effectiveness in managing its accounts receivable.

3. Payables Turnover:
- Similarly, there is no data available for the payables turnover ratio, which evaluates how well the company is managing its trade payables. Without this data, it is difficult to determine how efficiently Dupont De Nemours Inc is managing its accounts payable.

4. Working Capital Turnover:
- The working capital turnover ratio shows how effectively the company is using its working capital to generate sales revenue. Dupont De Nemours Inc's working capital turnover has varied significantly, from 1.74 to 7.92. A higher ratio indicates that the company is efficiently utilizing its working capital to generate sales. The substantial increase in 2024 compared to previous years suggests a significant improvement in working capital efficiency.

In conclusion, while Dupont De Nemours Inc appears to manage its inventory efficiently with a consistent inventory turnover ratio, the lack of data for receivables and payables turnover limits a comprehensive analysis of the company's overall activity ratios. The notable increase in the working capital turnover ratio in 2024 indicates improved efficiency in utilizing working capital to drive sales revenue. Further examination of receivables and payables turnover would provide a more complete understanding of Dupont De Nemours Inc's working capital management.

Average number of days

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	98.67	100.02	101.18	131.05	100.58
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—

Based on the provided data for Dupont De Nemours Inc, we can analyze the activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- The average number of days it takes for Dupont De Nemours Inc to sell its inventory increased from 100.58 days in 2020 to 131.05 days in 2021, then decreased to 101.18 days in 2022, and remained relatively stable at around 100 days in 2023 and 2024.
- A higher DOH ratio indicates that the company is holding onto its inventory for a longer period, which may tie up capital and increase holding costs. The decrease in 2022 suggests improved inventory turnover efficiency compared to 2021.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on Days of Sales Outstanding for Dupont De Nemours Inc across the years, suggesting that DSO data may not be available or meaningful for the company's operations.
- DSO measures the average number of days it takes for a company to collect its accounts receivable. Lack of DSO data makes it challenging to assess the company's efficiency in collecting payments from customers.

3. Number of Days of Payables:
- Similar to DSO, the data does not include information on the Number of Days of Payables for Dupont De Nemours Inc, indicating that specific data on the company's payables turnover is not available.
- Days of payables measure how long it takes a company to pay its suppliers. This ratio helps in understanding cash flow management and relationships with suppliers.

In conclusion, while we can interpret the changes in Days of Inventory on Hand for Dupont De Nemours Inc, the lack of information on Days of Sales Outstanding and Number of Days of Payables limits our ability to provide a comprehensive analysis of the company's activity ratios related to accounts receivable and payables management.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	—	—	2.27	1.80	2.04
Total asset turnover	0.34	0.31	0.31	0.27	0.29

The Fixed Asset Turnover ratio for Dupont De Nemours Inc has shown some fluctuations over the years. In 2020, the ratio was 2.04, indicating that the company generated $2.04 in revenue for every dollar invested in fixed assets. However, this ratio decreased to 1.80 in 2021 before increasing to 2.27 in 2022. The absence of data for 2023 and 2024 limits our ability to assess the trend further, but the fluctuations suggest varying efficiency in utilizing fixed assets to generate sales.

On the other hand, the Total Asset Turnover ratio reflects how effectively the company is using its total assets to generate revenue. The ratio has been relatively stable over the years, with values of 0.29 in 2020, 0.27 in 2021, 0.31 in both 2022 and 2023, and 0.34 in 2024. This indicates that, on average, Dupont De Nemours Inc is generating approximately 0.31 to 0.34 in revenue for every dollar of total assets invested.

Overall, while the Fixed Asset Turnover ratio showed some fluctuations, the Total Asset Turnover ratio remained relatively steady, suggesting a consistent performance in utilizing assets to drive revenue generation.