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Dynacq Healthcare (Dynacq Healthcare) Net-Net Working Capital : $-0.14 (As of Nov. 2015)


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What is Dynacq Healthcare 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.

Dynacq Healthcare's Net-Net Working Capital for the quarter that ended in Nov. 2015 was $-0.14.

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

DYII's Price-to-Net-Net-Working-Capital is not ranked *
in the Healthcare Providers & Services industry.
Industry Median: 7.515
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Dynacq Healthcare Net-Net Working Capital Historical Data

The historical data trend for Dynacq Healthcare'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.

Dynacq Healthcare Net-Net Working Capital Chart

Dynacq Healthcare Annual Data
Trend Aug06 Aug07 Aug08 Aug09 Aug10 Aug11 Aug12 Aug13 Aug14 Aug15
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.28 -0.19 0.17 -0.07 -0.01

Dynacq Healthcare Quarterly Data
Feb11 May11 Aug11 Nov11 Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15
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 -0.11 -0.24 0.06 -0.01 -0.14

Competitive Comparison of Dynacq Healthcare's Net-Net Working Capital

For the Medical Care Facilities subindustry, Dynacq Healthcare'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.


Dynacq Healthcare's Price-to-Net-Net-Working-Capital Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Dynacq Healthcare's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



Dynacq Healthcare Net-Net Working Capital Calculation

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

Net-Net Working Capital(A: Aug. 2015 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(15.829+0.75 * 1.622+0.5 * 0.258-17.257
-0-0.064)/13.4601
=-0.01

Dynacq Healthcare's Net-Net Working Capital (NNWC) per share for the quarter that ended in Nov. 2015 is calculated as

Net-Net Working Capital(Q: Nov. 2015 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(14.79+0.75 * 0.944+0.5 * 0.247-17.529
-0-0.064)/13.6016
=-0.14

* 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.


Dynacq Healthcare  (GREY:DYII) 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.


Dynacq Healthcare Net-Net Working Capital Related Terms

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Dynacq Healthcare (Dynacq Healthcare) Business Description

Traded in Other Exchanges
N/A
Address
4301 Vista Road, Pasadena, TX, USA, 77504
Dynacq Healthcare Inc is a holding company. Through its subsidiaries develops and manages general acute care hospitals that principally provide specialized surgeries. The company specializes in a small number of higher-margin specialties and patient care services such as orthopedics, neurosurgery, and general surgery. In addition, the group invests in debt and equity securities. Geographically, the activities of the group are carried out through the region of US.

Dynacq Healthcare (Dynacq Healthcare) Headlines

From GuruFocus

Graham NCAV Review: Dynacq Healthcare Inc

By rozer William J. DeRosa, Jr., CFA 05-25-2010