Shanda Games (Shanda Games) Net-Net Working Capital : $-0.07 (As of Dec. 2014)

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What is Shanda Games 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.

Shanda Games's Net-Net Working Capital for the quarter that ended in Dec. 2014 was $-0.07.

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

GAME's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Interactive Media industry.
Industry Median: 5.32
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Shanda Games Net-Net Working Capital Historical Data

The historical data trend for Shanda Games'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.

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Shanda Games Net-Net Working Capital Chart

Shanda Games Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Net-Net Working Capital

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-0.29

-0.12

-0.30

-1.22

-0.07

Shanda Games Semi-Annual Data
	Dec07	Dec08	Dec09	Dec10	Dec11	Dec12	Dec13	Dec14
Net-Net Working Capital	Get a 7-Day Free Trial			-0.29	-0.12	-0.30	-1.22	-0.07

Competitive Comparison of Shanda Games's Net-Net Working Capital

For the Electronic Gaming & Multimedia subindustry, Shanda Games'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.

Shanda Games's Price-to-Net-Net-Working-Capital Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Shanda Games's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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

Shanda Games Net-Net Working Capital Calculation

Shanda Games's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2014 is calculated as

	Net-Net Working Capital		(A: Dec. 2014 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(281.136	+	0.75 * 37.423	+	0.5 * 0	-	282.586
-	0	-	46.009)	/	268.916
=	-0.07

Shanda Games's Net-Net Working Capital (NNWC) per share for the quarter that ended in Dec. 2014 is calculated as

	Net-Net Working Capital		(Q: Dec. 2014 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(281.136	+	0.75 * 37.423	+	0.5 * 0	-	282.586
-	0	-	46.009)	/	268.916
=	-0.07

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.

Shanda Games (NAS:GAME) 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.

Shanda Games Net-Net Working Capital Related Terms

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Shanda Games (Shanda Games) Business Description

Industry

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Traded in Other Exchanges

N/A

Address

Website

http://www.shandagames.com

Shanda Games Ltd was incorporated in the Cayman Islands on June 12, 2008. The Company is an online game company in China in terms of the size, diversity of its game portfolio, game revenues and game player base. It completed its initial public offering on September 30, 2009. It develop and source a broad array of game content through multiple channels, including in-house development, licensing, investment, acquisition, joint development and joint operation. As of March 31, 2015, it operated 35 MMO games and 29 mobile games in China and certain overseas markets. The games operated by the Company are: Mir II, BNB, Woool, Legend of Immortals, Age of Wushu, among others. It competes with other online game developers and operators in China, including Tencent Holdings Limited, NetEase, Inc., Changyou.com Limited, Perfect World Co., Ltd., Giant Interactive, Kingsoft, KongZhong Corporation, NetDragon Websoft, Inc. and The9 Limited.