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Chemtura (Chemtura) Net-Net Working Capital : $-10.40 (As of Dec. 2016)


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What is Chemtura 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.

Chemtura's Net-Net Working Capital for the quarter that ended in Dec. 2016 was $-10.40.

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

CHMT's Price-to-Net-Net-Working-Capital is not ranked *
in the Chemicals industry.
Industry Median: 7.325
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Chemtura Net-Net Working Capital Historical Data

The historical data trend for Chemtura'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.

Chemtura Net-Net Working Capital Chart

Chemtura Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -11.72 -8.38 -12.12 -10.73 -10.40

Chemtura Quarterly Data
Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16
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 -10.73 -11.98 -11.64 -11.32 -10.40

Competitive Comparison of Chemtura's Net-Net Working Capital

For the Specialty Chemicals subindustry, Chemtura'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.


Chemtura's Price-to-Net-Net-Working-Capital Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Chemtura's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



Chemtura Net-Net Working Capital Calculation

Chemtura's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2016 is calculated as

Net-Net Working Capital(A: Dec. 2016 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(220+0.75 * 213+0.5 * 310-1190
-0-0)/63
=-10.40

Chemtura's Net-Net Working Capital (NNWC) per share for the quarter that ended in Dec. 2016 is calculated as

Net-Net Working Capital(Q: Dec. 2016 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(220+0.75 * 213+0.5 * 310-1190
-0-0)/63
=-10.40

* 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.


Chemtura  (NYSE:CHMT) 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.


Chemtura Net-Net Working Capital Related Terms

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


Chemtura (Chemtura) Business Description

Traded in Other Exchanges
N/A
Address
Chemtura manufactures and sells a variety of chemicals, which include lubricants and bromine. The company organizes itself into two segments based on product type. The industrial performance products segment, which generates most of Chemtura's revenue, sells synthetic lubricants and specialty greases that reduce friction for engines and machines. These products are typically sold to the automotive, aviation, marine, and refrigeration industries. The industrial engineered products segment sells a variety of bromine-based products, which include brominated flame retardants for consumer electronics, oil and gas drilling fluids, and pesticides for the agricultural industry. More revenue comes from North America than any other region.
Executives
Jeffrey D Benjamin director 9 WEST 57TH STREET, 43TH FLOOR, NEW YORK NY 10019
Anna C Catalano director 1313 NORTH MARKET STREET, WILMINGTON DE 19894
John K Wulff director C/O HERCULES INC, 1313 NORTH MARKET STREET, WILMINGTON DE 19894-0001
Stephen C Forsyth officer: EVP & CFO C/O HEXCEL CORP, 281 TRESSER BLVD, STAMFORD CT 06901
Jonathan F Foster director 777 THIRD AVE, 30TH FL, NEW YORK NY 10017
Laurence Michael Orton officer: VP, Corporate Controller C/O CHEMTURA CORPORATION, 199 BENSON ROAD, MIDDLEBURY CT 06749
Craig A Rogerson director, officer: President and CEO 1313 N MARKET ST, WILMINGTON DE 19894
Timothy J Bernlohr director 90 EAST HALSEY RD., PARSIPPANY NJ 07054
James W Crownover director
Kevin V Mahoney officer: SVP and Corporate Controller 199 BENSON ROAD, MIDDLEBURY CT 06749
Roger L Headrick director 199 BENSON RD, MIDDLEBURY CT 06749
Burton M Joyce director
Hale Martin M Sr director C/O GREAT LAKES CHEMICAL, 500 E 96TH STREET SUITE 500, INDIANAPOLIS IN 46240
Trian Fund Management, L.p. other: less than 10% owner 280 PARK AVENUE, 41ST FLOOR, NEW YORK NY 10017
Edward P Garden director 223 SUNSET AVENUE, PALM BEACH FL 33480

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