Forest Road Acquisition (Forest Road Acquisition) Net-Net Working Capital : $0.00 (As of Sep. 2020)

View and export this data going back to 2021. Start your Free Trial

What is Forest Road Acquisition 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 Road Acquisition's Net-Net Working Capital for the quarter that ended in Sep. 2020 was $0.00.

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

FRX's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Diversified Financial Services industry.
Industry Median: 1.83
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Forest Road Acquisition Net-Net Working Capital Historical Data

The historical data trend for Forest Road Acquisition'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 Road Acquisition Net-Net Working Capital Chart

Forest Road Acquisition Annual Data

Trend

Dec20

Net-Net Working Capital

Forest Road Acquisition Semi-Annual Data
	Sep20
Net-Net Working Capital	-

Competitive Comparison of Forest Road Acquisition's Net-Net Working Capital

For the Shell Companies subindustry, Forest Road Acquisition'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 Road Acquisition's Price-to-Net-Net-Working-Capital Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Forest Road Acquisition's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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

Forest Road Acquisition Net-Net Working Capital Calculation

Forest Road Acquisition's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2020 is calculated as

	Net-Net Working Capital		(A: Dec. 2020 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(1.184	+	0.75 * 0	+	0.5 * 0	-	42.699
-	0	-	0)	/	0
=	N/A

Forest Road Acquisition's Net-Net Working Capital (NNWC) per share for the quarter that ended in Sep. 2020 is calculated as

	Net-Net Working Capital		(Q: Sep. 2020 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(0	+	0.75 * 0	+	0.5 * 0	-	0.018
-	0	-	0)	/	0
=	N/A

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 Road Acquisition (NYSE:FRX) 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 Road Acquisition Net-Net Working Capital Related Terms

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