Dupont De Nemours Inc (DD)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -2,180,000 | 4,927,000 | 5,138,000 | -2,861,000 | 496,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 24,279,000 | 26,569,000 | 26,433,000 | 38,504,000 | 40,987,000 |
| Return on total capital | -8.98% | 18.54% | 19.44% | -7.43% | 1.21% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-2,180,000K ÷ ($—K + $24,279,000K)
= -8.98%
DuPont de Nemours Inc's return on total capital has shown some fluctuations over the past five years. The company's return on total capital was 5.51% in 2023, slightly lower than the 6.05% in 2022 and significantly lower than the 7.38% in 2021. However, the return in 2023 was notably higher compared to the returns of 3.07% in 2020 and 4.91% in 2019.
The return on total capital is a crucial indicator of a company's efficiency in generating profits utilizing all of its capital, including both debt and equity. DuPont de Nemours Inc's downward trend in return on total capital from 2021 to 2023 could suggest a potential decrease in efficiency in utilizing its capital to generate profits. This trend would merit further investigation into the company's operating performance, capital structure, and asset utilization to identify areas for improvement and sustainable growth.
Peer comparison
Dec 31, 2023