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Alcoa (AA) Net-Net Working Capital : $-40.66 (As of Mar. 2024)


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What is Alcoa Net-Net Working Capital?

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Alcoa's Net-Net Working Capital for the quarter that ended in Mar. 2024 was $-40.66.

The industry rank for Alcoa's Net-Net Working Capital or its related term are showing as below:

AA's Price-to-Net-Net-Working-Capital is not ranked *
in the Metals & Mining industry.
Industry Median: 5.5
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Alcoa Net-Net Working Capital Historical Data

The historical data trend for Alcoa's Net-Net Working Capital can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Alcoa Net-Net Working Capital Chart

Alcoa Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -45.31 -47.80 -37.99 -36.84 -41.40

Alcoa Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Net-Net Working Capital Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -38.01 -36.81 -38.49 -41.40 -40.66

Competitive Comparison of Alcoa's Net-Net Working Capital

For the Aluminum subindustry, Alcoa's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Alcoa's Price-to-Net-Net-Working-Capital Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Alcoa's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Alcoa's Price-to-Net-Net-Working-Capital falls into.



Alcoa Net-Net Working Capital Calculation

Alcoa's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2023 is calculated as

Net-Net Working Capital(A: Dec. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(944+0.75 * 656+0.5 * 2158-8310
-0-1594)/178.472
=-41.40

Alcoa's Net-Net Working Capital (NNWC) per share for the quarter that ended in Mar. 2024 is calculated as

Net-Net Working Capital(Q: Mar. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(1358+0.75 * 869+0.5 * 2048-8794
-0-1540)/179.559
=-40.66

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.


Alcoa  (NYSE:AA) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.


Alcoa Net-Net Working Capital Related Terms

Thank you for viewing the detailed overview of Alcoa's Net-Net Working Capital provided by GuruFocus.com. Please click on the following links to see related term pages.


Alcoa (AA) Business Description

Address
201 Isabella Street, Suite 500, Pittsburgh, PA, USA, 15212-5858
Alcoa Corp is a vertically integrated aluminum company whose operations include bauxite mining, alumina refining, and the manufacture of primary aluminum. It is the world's largest bauxite miner and alumina refiner by production volume, and its profits are closely tied to prevailing commodity prices along the aluminum supply chain. The company segments include Bauxite; Alumina and Aluminum. It generates maximum revenue from the Aluminum segment. Geographically, it derives a majority of its revenue from the United States.
Executives
Renee Henry officer: SVP & Controller 201 ISABELLA STREET, STE 500, PITTSBURGH PA 15212
Nicol Gagstetter officer: EVP & Chief Ext. Aff. Officer 201 ISABELLA STREET, SUITE 500, PITTSBURGH PA 15212
Andrew Hastings officer: EVP & Gen. Counsel 201 ISABELLA STREET, SUITE 500, PITTSBURGH PA 15212
De Oliveira Marques Roberto director C/O MONDELEZ INTERNATIONAL, INC., THREE PARKWAY NORTH, DEERFIELD IL 60048
Roy Christopher Harvey director, officer: President, CEO & Director 201 ISABELLA STREET, SUITE 500, PITTSBURGH PA 15212
Renato Bacchi officer: EVP & Chief Strategy Officer 201 ISABELLA STREET, SUITE 500, PITTSBURGH PA 15212
Harden Sonya Elam officer: EVP & Chief Ext. Aff. Officer 201 ISABELLA STREET, SUITE 500, PITTSBURGH PA 15212
William F Oplinger officer: Executive VP & CFO 201 ISABELLA STREET, SUITE 500, PITTSBURGH PA 15212
Jeffrey D. Heeter officer: EVP, Gen. Counsel & Secretary C/O ALCOA CORPORATION, 201 ISABELLA STREET, SUITE 500, PITTSBURGH PA 15212
Tammi A Jones officer: EVP & CHRO 201 ISABELLA STREET, SUITE 500, PITTSBURGH PA 15212
Jackson Prince Roberts director 201 ISABELLA STREET, SUITE 500, PITTSBURGH PA 15212
John D Slaven officer: EVP & Chief Strategy Officer 201 ISABELLA STREET, SUITE 500, PITTSBURGH PA 15212-5858
Kelly R. Thomas officer: EVP & Chief Commercial Officer 25825 SCIENCE PARK DRIVE, SUITE 400, BEACHWOOD OH 44122
Molly S. Beerman officer: Vice President and Controller 201 ISABELLA STREET, SUITE 500, PITTSBURGH PA 15212
Benjamin D Kahrs officer: EVP, Chief Innovation Officer 201 ISABELLA STREET, SUITE 500, PITTSBURGH PA 15212