Dupont De Nemours Inc (DD)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -2,152,000 | 4,712,000 | 4,864,000 | 5,099,000 | 4,922,000 | -250,000 | -362,000 | -102,000 | 236,000 | 1,019,000 | 86,000 | -1,134,000 | -2,464,000 | -3,023,000 | -1,634,000 | -1,136,000 | -1,816,000 | 2,320,000 | 200,000 | -669,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 41,343,000 |
| Total stockholders’ equity | US$ in thousands | 24,279,000 | 24,192,000 | 26,123,000 | 26,737,000 | 26,569,000 | 24,909,000 | 25,528,000 | 26,176,000 | 26,433,000 | 26,633,000 | 26,877,000 | 27,188,000 | 38,504,000 | 37,559,000 | 37,005,000 | 39,551,000 | 40,987,000 | 41,344,000 | 42,006,000 | 92,444,000 |
| Return on total capital | -8.86% | 19.48% | 18.62% | 19.07% | 18.53% | -1.00% | -1.42% | -0.39% | 0.89% | 3.83% | 0.32% | -4.17% | -6.40% | -8.05% | -4.42% | -2.87% | -4.43% | 5.61% | 0.48% | -0.50% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-2,152,000K ÷ ($—K + $24,279,000K)
= -8.86%
Based on the data provided for DuPont de Nemours Inc's return on total capital over the past eight quarters, we observe a gradual decline from 6.83% in Q1 2022 to 5.51% in Q4 2023. This downward trend suggests a decrease in the company's ability to generate returns relative to its total capital employed over the period.
The return on total capital, which measures the efficiency of a company in generating profits from its total invested capital, has seen a fluctuating pattern within this timeframe. While the company experienced a peak of 6.83% in Q1 2022, it has steadily decreased in subsequent quarters, indicating potential challenges in maximizing profitability relative to the capital invested.
It is essential for DuPont de Nemours Inc to closely monitor and address the factors contributing to this declining trend in return on total capital to ensure sustainable growth and efficient capital utilization in the future. Further analysis of the company's operational performance, capital structure, and investment strategies may provide valuable insights into improving its overall financial health and maximizing returns for its stakeholders.
Peer comparison
Dec 31, 2023