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Forest City Realty Trust (Forest City Realty Trust) Net-Net Working Capital : $-14.58 (As of Sep. 2018)


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What is Forest City Realty Trust 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.

Forest City Realty Trust's Net-Net Working Capital for the quarter that ended in Sep. 2018 was $-14.58.

The industry rank for Forest City Realty Trust's Net-Net Working Capital or its related term are showing as below:

FCE.B's Price-to-Net-Net-Working-Capital is not ranked *
in the REITs industry.
Industry Median: 11.27
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Forest City Realty Trust Net-Net Working Capital Historical Data

The historical data trend for Forest City Realty Trust'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.

Forest City Realty Trust Net-Net Working Capital Chart

Forest City Realty Trust Annual Data
Trend Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Dec14 Dec15 Dec16 Dec17
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -46.61 -32.80 -23.20 -18.05 -16.77

Forest City Realty Trust Quarterly Data
Oct13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
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 -17.04 -16.74 -14.51 -14.09 -14.58

Competitive Comparison of Forest City Realty Trust's Net-Net Working Capital

For the REIT - Retail subindustry, Forest City Realty Trust'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.


Forest City Realty Trust's Price-to-Net-Net-Working-Capital Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Forest City Realty Trust's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Forest City Realty Trust's Price-to-Net-Net-Working-Capital falls into.



Forest City Realty Trust Net-Net Working Capital Calculation

Forest City Realty Trust's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2017 is calculated as

Net-Net Working Capital(A: Dec. 2017 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(204.26+0.75 * 121.407+0.5 * 0-4218.57
-0-416.283)/258.726
=-16.77

Forest City Realty Trust's Net-Net Working Capital (NNWC) per share for the quarter that ended in Sep. 2018 is calculated as

Net-Net Working Capital(Q: Sep. 2018 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(485.941+0.75 * 224.788+0.5 * 0-4202.624
-0-232.318)/259.232
=-14.58

* 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.


Forest City Realty Trust  (NYSE:FCE.B) 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.


Forest City Realty Trust Net-Net Working Capital Related Terms

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Forest City Realty Trust (Forest City Realty Trust) Business Description

Traded in Other Exchanges
N/A
Address
Forest City Realty Trust Inc is engaged in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States. The company's segments include the Commercial Group, Residential Group, Land Development Group and Corporate Activities. It operates mixed-use projects such as residential rental properties, regional malls, specialty/urban retail centers, office and life science buildings and others. In addition, it also engaged in acquiring and sale of both land and developed lots to residential, commercial and industrial clients. Revenue for the group is derived from the source of rental, service and management fees and land sales.