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FairPoint Communications (FairPoint Communications) Net-Net Working Capital : $-43.55 (As of Mar. 2017)


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What is FairPoint Communications 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.

FairPoint Communications's Net-Net Working Capital for the quarter that ended in Mar. 2017 was $-43.55.

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

FRP's Price-to-Net-Net-Working-Capital is not ranked *
in the Telecommunication Services industry.
Industry Median: 8.485
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

FairPoint Communications Net-Net Working Capital Historical Data

The historical data trend for FairPoint Communications'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.

FairPoint Communications Net-Net Working Capital Chart

FairPoint Communications 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 -74.62 -67.95 -73.43 -46.52 -44.44

FairPoint Communications Quarterly Data
Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17
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 -45.72 -44.95 -44.67 -44.44 -43.55

Competitive Comparison of FairPoint Communications's Net-Net Working Capital

For the Telecom Services subindustry, FairPoint Communications'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.


FairPoint Communications's Price-to-Net-Net-Working-Capital Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, FairPoint Communications's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



FairPoint Communications Net-Net Working Capital Calculation

FairPoint Communications'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)
=(34.924+0.75 * 62.395+0.5 * 0-1284.912
-0-0)/27.0744
=-44.44

FairPoint Communications's Net-Net Working Capital (NNWC) per share for the quarter that ended in Mar. 2017 is calculated as

Net-Net Working Capital(Q: Mar. 2017 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(38.747+0.75 * 60.762+0.5 * 0-1271.887
-0-0)/27.2668
=-43.55

* 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.


FairPoint Communications  (NAS:FRP) 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.


FairPoint Communications Net-Net Working Capital Related Terms

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


FairPoint Communications (FairPoint Communications) Business Description

Traded in Other Exchanges
N/A
Address
521 East Morehead Street, Suite 500, Charlotte, NC, USA, 28202
FairPoint is the seventh- largest local telephone firm in the United States, following its acquisition of Verizon's northern New England assets. It operates in 18 states serving 1.4 million access lines, though nearly 90% of these are in Maine, New Hampshire, and Vermont. The firm was founded in 1991 and has its headquarters in Charlotte, N.C.
Executives
Peter D Aquino director MOTIENT CORP, 300 KNIGHTBRIDGE PARKWAY, LINCOLNSHIRE IL 60069
David L Treadwell director 222 S 15TH STREET, SUITE 600 N, OMAHA NE 68102
Edward D Horowitz director C/O EDSLINK LLC, 670 WEST END AVE, NEW YORK NY 10025
Wayne Wilson director 29 LAKE AVE., SUNAPEE NH 03782
Ajay Sabherwal officer: EVP & CFO C/O FAIRPOINT COMMUNICATIONS, INC., 521 E. MOREHEAD STREET, SUITE 500, CHARLOTTE NC 28202
Angelo Gordon & Co Lp/ny 10 percent owner 245 PARK AVENUE, 26TH FLOOR, NEW YORK NY 10167
Michael L Gordon 10 percent owner C/O ANGELO GORDON & CO, 245 PARK AVE 26TH FL, NEW YORK NY 10167
John M Angelo 10 percent owner C/O ANGELO GORDON & CO, 245 PARK AVE 26TH FL, NEW YORK NY 10167
Marathon Asset Management Lp 10 percent owner ONE BRYANT PARK, 38TH FLOOR, NEW YORK NY 10036
David L Hauser other: Former Officer and Director 704-731-1522, CHARLOTTE NC 28209-4674
Lehman Brothers Holdings Inc 10 percent owner 1271 AVENUE OF THE AMERICAS, NEW YORK NY 10020
Thl Equity Advisors Iv Llc 10 percent owner C/O THOMAS H. LEE PARTNERS, 100 FEDERAL STREET, 35TH FLOOR, BOSTON MA 02110
Thomas H. Lee Advisors, Llc 10 percent owner C/O THOMAS H. LEE PARTNERS, L.P., 100 FEDERAL STREET, 35TH FLOOR, BOSTON MA 02110
Frank K Bynum director, 10 percent owner C/O KELSO & CO, 320 PARK AVENUE 24TH FLOOR, NEW YORK NY 10022
Michael B Goldberg 10 percent owner

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