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Demandware (Demandware) Net-Net Working Capital : $3.92 (As of Mar. 2016)


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What is Demandware 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.

Demandware's Net-Net Working Capital for the quarter that ended in Mar. 2016 was $3.92.

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

DWRE's Price-to-Net-Net-Working-Capital is not ranked *
in the Software industry.
Industry Median: 7.425
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Demandware Net-Net Working Capital Historical Data

The historical data trend for Demandware'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.

Demandware Net-Net Working Capital Chart

Demandware Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Net-Net Working Capital
Get a 7-Day Free Trial -3.57 2.57 7.26 5.94 4.21

Demandware Quarterly Data
Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16
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 4.30 3.99 3.99 4.21 3.92

Competitive Comparison of Demandware's Net-Net Working Capital

For the Software - Application subindustry, Demandware'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.


Demandware's Price-to-Net-Net-Working-Capital Distribution in the Software Industry

For the Software industry and Technology sector, Demandware's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



Demandware Net-Net Working Capital Calculation

Demandware's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2015 is calculated as

Net-Net Working Capital(A: Dec. 2015 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(197.009+0.75 * 60.793+0.5 * 0-89.932
-0-0)/36.224
=4.21

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

Net-Net Working Capital(Q: Mar. 2016 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(195.756+0.75 * 49.79+0.5 * 0-84.234
-0-0)/38.0217
=3.92

* 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.


Demandware  (NYSE:DWRE) 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.


Demandware Net-Net Working Capital Related Terms

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Demandware (Demandware) Business Description

Traded in Other Exchanges
N/A
Address
Demandware Inc was incorporated in Delaware in February 2004 as SSE Holding, Inc. and changed its name to Demandware, Inc. in August 2004. The Company provides enterprise-class cloud-based digital commerce solutions for retailers and branded manufacturers. Its platform, Demandware Commerce, enables customers to establish and execute complex digital commerce strategies that include expansion, multi-brand rollouts and omni-channel operations. It enable companies to easily design, implement and manage their own customized digital commerce sites, including websites, mobile applications, in-store solutions and other digital storefronts. Through its scalable, secure, and open Demandware Commerce platform, its customers create seamless brand experiences to reach their consumers across all digital touch points globally. The Company's cloud infrastructure increases processing capacity of its customers' digital commerce sites to meet surges in demand, minimize page load times and maximize uptime. Its cloud platform also offers the high reliability and security required by customers to implement their digital commerce strategies, and the Company has achieved 99.99% average platform availability since 2005. The Company has built an ecosystem of trusted partners called Demandware LINK that complements and optimizes Demandware Commerce. Demandware LINK is comprised of technology, solution and end-to end partners. Its geographical areas of operations include, United States, Germany and United Kingdom. The Company's customers include adidas, Barneys New York, Bestseller, Brooks Brothers, Carter's, Deckers, Guthy-Renker, House of Fraser, Jewelry Television, Kate Spade, Lands' End, L'Oreal, mothercare, s.Oliver, and Tory Burch. The Company competes with IBM, Oracle/ATG, eBay/Magento, Digital River, eBay/GSI Commerce, MarketLive and Venda. Its solutions are subject to export controls, including the Commerce Department's Export Administration Regulations and various economic and trade sanctions regulations established by the Treasury Department's Office of Foreign Assets Controls, and exports of its solutions must be made in compliance with these laws.
Executives
Leonard A Schlesinger director THREE LIMITED PARKWAY, COLUMBUS OH 43230
Charles Kane director 289 TURNPIKE RD, WESTBORO MA 01581
Kathleen Bender Patton officer: SVP and General Counsel 2 CANAL PARK, 4TH FLOOR, CAMBRIDGE MA 02141
Jill Granoff director LIZ CLAIBORNE, INC., 1441 BROADWAY, NEW YORK NY 10018
Thomas D Ebling director, officer: President and CEO C/O DEMANDWARE, INC. 5 WALL STREET BURLINGTON MA 01803
Timothy M Adams officer: See Remarks 311 ARSENAL STREET, WATERTOWN MA 02472
Lawrence S Bohn director 11305 FOUR POINTS DRIVE, BUILDING II, THIRD FLOOR, AUSTIN TX 78726
Sheila Marie Flaherty officer: Chief Legal Officer 177 BEACON STREET, #4, BOSTON MA 02116
David J Orfao 10 percent owner C/O GENERAL CATALYST PARTNERS, 20 UNIVERSITY RD., 4TH FLOOR, CAMBRIDGE MA 02138
Joel E Cutler 10 percent owner C/O GENERAL CATALYST PARTNERS, 20 UNIVERSITY ROAD, SUITE 450, CAMBRIDGE MA 02138
Nbvm Gp, Llc 10 percent owner 950 WINTER STREET, SUITE 4600, WALTHAM MA 02451
North Bridge Venture Management V, L.p. 10 percent owner 950 WINTER STREET, SUITE 4600, WALTHAM MA 02451
North Bridge Venture Partners V-b Lp 10 percent owner
Edward T Anderson 10 percent owner 950 WINTER ST SUITE 4600, WATHAM MA 02451
Richard A Damore 10 percent owner C/O NORTHBRIDGE VENTURE PARTNERS, 950 WINTER ST STE 4600, WALTHAM MA 02451

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