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LinkedIn (LinkedIn) Net-Net Working Capital : $8.03 (As of Sep. 2016)


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What is LinkedIn 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.

LinkedIn's Net-Net Working Capital for the quarter that ended in Sep. 2016 was $8.03.

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

LNKD's Price-to-Net-Net-Working-Capital is not ranked *
in the Interactive Media industry.
Industry Median: 5.28
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

LinkedIn Net-Net Working Capital Historical Data

The historical data trend for LinkedIn'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.

LinkedIn Net-Net Working Capital Chart

LinkedIn Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Net-Net Working Capital
Get a 7-Day Free Trial 4.06 3.91 15.23 13.42 7.79

LinkedIn Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
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 7.76 7.79 7.48 8.45 8.03

Competitive Comparison of LinkedIn's Net-Net Working Capital

For the Internet Content & Information subindustry, LinkedIn'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.


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

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

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



LinkedIn Net-Net Working Capital Calculation

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

Net-Net Working Capital(A: Dec. 2015 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(3119.382+0.75 * 603.06+0.5 * 0-2542.556
-0-0)/132.049
=7.79

LinkedIn's Net-Net Working Capital (NNWC) per share for the quarter that ended in Sep. 2016 is calculated as

Net-Net Working Capital(Q: Sep. 2016 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(3364.996+0.75 * 541.325+0.5 * 0-2682.593
-0-0)/135.537
=8.03

* 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.


LinkedIn  (NYSE:LNKD) 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.


LinkedIn Net-Net Working Capital Related Terms

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


LinkedIn (LinkedIn) Business Description

Traded in Other Exchanges
N/A
Address
LinkedIn Corp was incorporated in Delaware on March 6, 2003, under the name LinkedIn, Ltd. and changed its name to LinkedIn Corporation in January 2005. The Company operates an online professional network on the Internet through which the Company's members are able to create, manage and share their professional identities online, build and engage with their professional networks, access shared knowledge and insights, and find business opportunities, enabling them to be more productive and successful. The Company currently has approximately over 400 million members in over 200 countries and territories. The Company offers free solutions including Stay Connected & Informed, Advance My Career and Ubiquitous Access; and Monetized Solutions including Talent Solutions, Marketing Solutions, and Premium Subscriptions. Its comprehensive platform provides members with solutions, including applications and tools, to search, connect and communicate with business contacts, learn about attractive career opportunities, join industry groups, research organizations and share information. The Company provides the following key benefits to their members: ability to manage their professional identity, enhanced ability to build and engage with their professional network, access to knowledge, insights and opportunities, aid in matching talent with opportunity, an efficient marketing channel, targeted advertising, and an increase in employee productivity. In addition, its core value of putting members first may conflict with the short-term interests of its business, the number of its registered members is higher than the number of actual members, and a substantial majority of its page views are generated by a minority of its members. Finally, it expects to face increasing competition in the market for online professional networks. The Company is subject to a number of foreign and domestic laws and regulations that affect companies conducting business online, many of which are still evolving and could be interpreted in ways that could harm its business.
Executives
A George Battle director 600 TOWNSEND ST, SUITE 500, SAN FRANCISCO CA 94103
Taylor Susan J.s. officer: VP, Corporate Controller & CAO C/O LINKEDIN CORPORATION, 2029 STIERLIN COURT, MOUNTAIN VIEW CA 94043
Patricia L Wadors officer: SVP Global Talent Organization C/O ALIGN TECHNOLOGY INC, 881 MARTIN AVE, SANTA CLARA CA 95050
Stanley J Meresman director 2071 HUNTINGTON LANE, LOS ALTOS CA 94024
Jeff Weiner director, officer: Chief Executive Officer C/O LINKEDIN CORPORATION, 394 PACIFIC AVENUE 2ND FLOOR, SAN FRANCISCO CA 94111
Leslie J Kilgore director 121 ALBRIGHT WAY, LOS GATOS CA 95032
Reid Hoffman director, 10 percent owner C/O LINKEDIN CORPORATION, 2029 STIERLIN COURT, MOUNTAIN VIEW CA 94043
Michael J Moritz director C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Dipchand Nishar officer: SVP, Products, User Experience C/O LINKEDIN CORPORATION, 2029 STIERLIN COURT, MOUNTAIN VIEW CA 94043
Erika Rottenberg officer: VP, GC & Secretary 2029 STIERLIN COURT, MOUNTAIN VIEW CA 94043
Greylock Xi Limited Partnership 10 percent owner ONE BRATTLE SQUARE, 4TH FLOOR, CAMBRIDGE MA 02138
Greylock Xi Gp Limited Partnership 10 percent owner ONE BRATTLE SQUARE, 4TH FLOOR, CAMBRIDGE MA 02138
Sequoia Capital Xi Principals Fund 10 percent owner C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Sc Xi Management Llc 10 percent owner C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Sequoia Technology Partners Xi 10 percent owner C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025

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