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American Power (American Power) Net-Net Working Capital : $-0.03 (As of Sep. 2012)


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What is American Power 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.

American Power's Net-Net Working Capital for the quarter that ended in Sep. 2012 was $-0.03.

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

AMPW's Price-to-Net-Net-Working-Capital is not ranked *
in the Oil & Gas industry.
Industry Median: 5.3
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

American Power Net-Net Working Capital Historical Data

The historical data trend for American Power'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.

American Power Net-Net Working Capital Chart

American Power Annual Data
Trend Sep07 Sep08 Sep09 Sep10 Sep11 Sep12
Net-Net Working Capital
Get a 7-Day Free Trial - - -0.02 -0.02 -0.03

American Power Semi-Annual Data
Sep07 Sep08 Sep09 Sep10 Sep11 Sep12
Net-Net Working Capital Get a 7-Day Free Trial - - -0.02 -0.02 -0.03

Competitive Comparison of American Power's Net-Net Working Capital

For the Oil & Gas E&P subindustry, American Power'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.


American Power's Price-to-Net-Net-Working-Capital Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, American Power's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



American Power Net-Net Working Capital Calculation

American Power's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Sep. 2012 is calculated as

Net-Net Working Capital(A: Sep. 2012 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0+0.75 * 0+0.5 * 0-2.931
-0-0)/101.247
=-0.03

American Power's Net-Net Working Capital (NNWC) per share for the quarter that ended in Sep. 2012 is calculated as

Net-Net Working Capital(Q: Sep. 2012 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0+0.75 * 0+0.5 * 0-2.931
-0-0)/101.247
=-0.03

* 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.


American Power  (OTCPK:AMPW) 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.


American Power Net-Net Working Capital Related Terms

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American Power (American Power) Business Description

Traded in Other Exchanges
N/A
Address
American Power Corp was incorporated in the State of Nevada on August 7, 2007. It is an exploration stage company engaged in coal, oil and natural gas exploration, development and production. The Company's current primary business focus is to acquire, explore and develop coal, oil and gas exploration properties in the United States of North America, with a particular focus on the Rocky Mountain region. It has acquired an assignment of certain contractual rights in coal and minerals located in Judith Basin County, Montana, collectively described as the 'Pace Coal Project', however these rights are speculative in nature and additional exploration work is required to determine their value.

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