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How Now, Dow: Fool by Numbers

By Motley Fool Contributors – Updated Nov 15, 2016 at 1:20AM

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Fast facts the Fool way.

On Jan. 25, conglomerate Dow Chemical (NYSE:DOW) released fourth-quarter earnings for the period ended Dec. 31.

  • The chemicals and performance plastics segments led a 2.7% revenue increase.
  • Research and development and selling, general, and administrative expenses dampened the bottom line to the tune of 11%.
  • Dow has earned a solid four-star rating in Motley Fool CAPS.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$12,236.0

$11,917.0

2.7%

Net Profit

$975.0

$1,096.0

(11.0%)

EPS

$1.00

$1.12

(10.7%)

Diluted Shares

971.1

981.3

(1.0%)



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

14.2%

15.8%

(1.6)

Operating Margin

11.6%

15.8%

(4.2)

Net Margin

8.0%

9.2%

(1.2)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$2,910.0

$3,838.0

(24.2%)

Accounts Rec.

$8,048.0

$7,926.0

1.5%

Inventory

$6,058.0

$5,319.0

13.9%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$5,674.0

$5,760.0

(1.5%)

Long-Term Debt

$8,036.0

$9,186.0

(12.5%)



Learn the ways of the balance sheet.

Cash Flow Highlights

As big as Dow is, you'd think it would hire enough help to give us a cash flow statement with the earnings release. Eeesh.

Find out why Fools always follow the money.

Related Companies:

  • Sherwin-Williams (NYSE:SHW)
  • Eastman Chemical (NYSE:EMN)
  • Rohm & Haas (NYSE:ROH)
  • Air Products & Chemicals (NYSE:APD)
  • Ashland (NYSE:ASH)

Related Foolishness:

Dow Chemical is a Motley Fool Income Investor recommendation. Find more dividend superstars with a free 30-day trial of James Early's low-risk, high-reward newsletter service.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

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Stocks Mentioned

DuPont de Nemours, Inc. Stock Quote
DuPont de Nemours, Inc.
DOW
The Sherwin-Williams Company Stock Quote
The Sherwin-Williams Company
SHW
$211.22 (1.52%) $3.17
Air Products and Chemicals, Inc. Stock Quote
Air Products and Chemicals, Inc.
APD
$237.07 (-0.61%) $-1.45
Ashland Global Holdings Inc. Stock Quote
Ashland Global Holdings Inc.
ASH
$97.12 (0.09%) $0.09

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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