GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Mellanox Technologies Ltd (NAS:MLNX) » Definitions » Net-Net Working Capital

Mellanox Technologies (Mellanox Technologies) Net-Net Working Capital : $12.70 (As of Mar. 2020)


View and export this data going back to 2007. Start your Free Trial

What is Mellanox Technologies 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.

Mellanox Technologies's Net-Net Working Capital for the quarter that ended in Mar. 2020 was $12.70.

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

MLNX's Price-to-Net-Net-Working-Capital is not ranked *
in the Semiconductors industry.
Industry Median: 8.06
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Mellanox Technologies Net-Net Working Capital Historical Data

The historical data trend for Mellanox Technologies'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.

Mellanox Technologies Net-Net Working Capital Chart

Mellanox Technologies Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.88 -0.62 1.50 5.90 11.36

Mellanox Technologies Quarterly Data
Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20
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 6.72 8.15 9.72 11.36 12.70

Competitive Comparison of Mellanox Technologies's Net-Net Working Capital

For the Semiconductors subindustry, Mellanox Technologies'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.


Mellanox Technologies's Price-to-Net-Net-Working-Capital Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Mellanox Technologies's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



Mellanox Technologies Net-Net Working Capital Calculation

Mellanox Technologies's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2019 is calculated as

Net-Net Working Capital(A: Dec. 2019 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(875.897+0.75 * 229.873+0.5 * 98.03-463.944
-0-0)/55.764
=11.36

Mellanox Technologies's Net-Net Working Capital (NNWC) per share for the quarter that ended in Mar. 2020 is calculated as

Net-Net Working Capital(Q: Mar. 2020 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(937.984+0.75 * 269.251+0.5 * 140.08-495.651
-0-0)/56.2352
=12.70

* 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.


Mellanox Technologies  (NAS:MLNX) 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.


Mellanox Technologies Net-Net Working Capital Related Terms

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


Mellanox Technologies (Mellanox Technologies) Business Description

Traded in Other Exchanges
N/A
Address
Beit Mellanox, Yokneam, ISR, 20692
Mellanox Technologies Ltd is engaged in the development, manufacturing, marketing and sales of end-to-end Ethernet and InfiniBand intelligent interconnect solutions and services for servers, storage, and hyper-converged infrastructure. The company offers integrated circuits, adapter cards, switch systems, cables, modules, software, services, and accessories. The company supplies its products mainly to the storage and communications infrastructure equipment vendors. The company operates its business mainly in United States, Europe, China, Japan, India, Taiwan and Australia.
Executives
David Perlmutter director C/O MELLANOX TECHNOLOGIES, INC., 350 OAKMEAD PARKWAY, SUITE 100, SUNNYVALE CA 94085
Amal M Johnson director C/O MELLANOX TECHNOLOGIES, INC., 350 OAKMEAD PARKWAY, SUITE 100, SUNNYVALE CA 94085
Glenda Dorchak director C/O MELLANOX TECHNOLOGIES, INC., 350 OAKMEAD PARKWAY, SUITE 100, SUNNYVALE CA 94085
Steve Sanghi director 2355 W CHANDLER BLVD, CHANDLER AZ 85224-6199
Gregory L Waters director ONSEMI C/O H. SPENCER, 5701 NORTH PIMA ROAD, SCOTTSDALE AZ 85250
Irwin Federman director 2735 SAND HILL ROAD, MENLO PARK CA 94025
Jon A Olson director 2100 LOGIC DRIVE, SAN JOSE CA 95124
Jack R Lazar director 400 W. CESAR CHAVEZ, ATTN: STOCK ADMINISTRATION, AUSTIN TX 78701
Umesh Padval director BESSEMER VENTURE PARTNERS, 535 MIDDLEFIELD ROAD, SUITE 245, MENLO PARK CA 94025
Clifton Thomas Weatherford director 1001 E. HILLSDALE BOULEVARD, SUITE 800, FOSTER CITY CA 94404
Mark R Mitchell 10 percent owner, other: See Footnote 2 777 THIRD AVENUE, 18TH FLOOR, NEW YORK NY 10017
Starboard Value & Opportunity C Lp 10 percent owner, other: See Footnote 2 777 THIRD AVENUE, 18TH FLOOR, NEW YORK NY 10017
Starboard Value & Opportunity S Llc 10 percent owner, other: See Footnote 2 777 THIRD AVENUE, 18TH FLOOR, NEW YORK NY 10017
Starboard Value R Lp 10 percent owner, other: See Footnote 2 777 THIRD AVENUE, 18TH FLOOR, NEW YORK NY 10017
Starboard Principal Co Gp Llc 10 percent owner, other: See Footnote 2 777 THIRD AVENUE, 18TH FLOOR, NEW YORK NY 10017