Dr Reddy's Laboratories (Dr Reddy's Laboratories) Net-Net Working Capital

: $4.08 (As of Dec. 2023)

View and export this data going back to 2001. Start your Free Trial

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.

Dr Reddy's Laboratories's Net-Net Working Capital for the quarter that ended in Dec. 2023 was $4.08.

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

RDY's Price-to-Net-Net-Working-Capital is ranked worse than
72.81% of 423 companies
in the Drug Manufacturers industry
Industry Median: 7.6 vs RDY: 17.50

Dr Reddy's Laboratories Net-Net Working Capital Historical Data

The historical data trend for Dr Reddy's Laboratories'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.

Dr Reddy's Laboratories Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Net-Net Working Capital

Get a 7-Day Free Trial

-1.20

0.30

0.17

1.39

3.63

Dr Reddy's Laboratories Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Net-Net Working Capital	Get a 7-Day Free Trial															2.95	3.63	3.90	3.94	4.08

Competitive Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Dr Reddy's Laboratories'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.

Dr Reddy's Laboratories Price-to-Net-Net-Working-Capital Distribution

For the Drug Manufacturers industry and Healthcare sector, Dr Reddy's Laboratories's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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

Dr Reddy's Laboratories Net-Net Working Capital Calculation

Dr Reddy's Laboratories's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Mar. 2023 is calculated as

	Net-Net Working Capital		(A: Mar. 2023 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(751.181	+	0.75 * 881.1	+	0.5 * 591.614	-	1104.496
-	0	-	0)	/	166.157
=	3.63

Dr Reddy's Laboratories's Net-Net Working Capital (NNWC) per share for the quarter that ended in Dec. 2023 is calculated as

	Net-Net Working Capital		(Q: Dec. 2023 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(869.111	+	0.75 * 941.901	+	0.5 * 730.247	-	1261.105
-	0	-	0)	/	166.513
=	4.08

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.

Dr Reddy's Laboratories (NYSE:RDY) 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.

Dr Reddy's Laboratories Net-Net Working Capital Related Terms

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

Dr Reddy's Laboratories (Dr Reddy's Laboratories) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Dr Reddy's Laboratories Ltd (NYSE:RDY) » Definitions » Net-Net Working Capital

Traded in Other Exchanges

DRREDDY:India 500124:India RDDA:Germany RDDA:Germany R1DY34:Brazil

Address

8-2-337, Road No. 3, Banjara Hills, Hyderabad, TG, IND, 500 034

Website

https://www.drreddys.com

Dr. Reddy's is one of the largest generic drug manufacturers in the world. It has a significant presence in North America, a region that makes up roughly half of its generics sales, and it services India (22% of its generics sales), Russia (12%), and certain European and Latin American countries. Beyond simple generics, Dr. Reddy's also has a solid portfolio of injectables which make up 25% of its North America sales. In branded generic markets like India, Dr. Reddy's has established a compelling presence with its strong brand name and earned a top five spot in key therapeutic areas including oncology and gastroenterology. Dr. Reddy's also has an active pharmaceutical ingredient business that manufactures over 150 APIs and sells in over 75 countries.